Menu
Chorus assures Government of UFB commitment

Chorus assures Government of UFB commitment

Will engage with Crown Fibre Holdings to discuss issues following Government announcement of Ernst and Young findings

Chorus chief executive officer (CEO), Mark Ratcliffe, has stated the broadband infrastructure company is “100 per cent committed” to the ultra-fast broadband (UFB) and rural broadband initiative (RBI), and will engage with Crown Fibre Holdings (CFH) to maintain pace with contractual commitments.

The statement was made in response to Communications and Information Technology Minister, Amy Adams, who announced that the Government was informed by Ernst and Young Australia, via verbal briefing, that the copper price changes will have “a significant impact on Chorus’ financial position” and that absent further action will put it at risk of not meeting its agreements.

The Ministry of Business, Innovation and Employment commissioned Ernst and Young Australia to investigate Chorus’ capability to deliver on its UFB and RBI contractual commitments with the Government following the Commerce Commissions’ decisions on wholesale prices for copper-based broadband services.

“While the quantum of the shortfall is still being finalised and will be outlined in its final report (due December 12), Ernst and Young has indicated it is unlikely to alter the high-level findings, and that the Government can act with confidence on the information Ernst and Young has supplied,” Adams said.

“As a result of this information, and because the Government remains strongly committed to the UFB roll-out, the Government expects that the next step will be for Chorus to approach CFH to discuss specific provisions within the UFB contract.”

Adams said the Government supports CFH entering into discussions with Chorus to manage the issue, and expects CFH to act within the $1.35 billion UFB budget.

She also said the Government expects Chorus to meet a significant part of the shortfall, and expects to know the outcome of the discussions “in a few months’ time.”

Earlier this week, Chorus applied for a final pricing principle (FPP) review of the Commerce Commission’s pricing decision and filed for a High Court appeal of the same decision following its “regrettable but necessary” decision to withdraw its 2014 financial year dividend guidance last month.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags copperCrown Fibre HoldingsCommerce CommissionChorusultra-fast broadband (UFB)Rural Broadband Initiative (RBI)governmentbroadband

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments