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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags governmentbroadbandRural Broadband Initiative (RBI)Crown Fibre HoldingsChorusCommerce Commissioncopperultra-fast broadband (UFB)

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments