Menu
Chorus offers investors connections update as UFB footprint expands

Chorus offers investors connections update as UFB footprint expands

“Many of our investors have been eager to know how this work is progressing..."

As part of Chorus’ regulatory update unveiled today, the telco reports that fixed line connections increased by 6,000 lines over the three month period to 30 September to a total of 1,783,000 lines, while total broadband connections increased by 15,000 to 1,178,000.

Announced to institutional investors and analysts, Chorus says its UFB network deployment continues to be “ahead of schedule” with fibre passing about 286,000 premises at 30 September, meaning 386,000 end-users are within reach of ultra-fast broadband.

Fibre connections grew to 53,000 across Chorus’ nationwide network at 30 September and about 37,000 fibre connections are within Chorus’ completed UFB network footprint.

Also, Chorus’ rural broadband rollout has brought 75,000 rural lines within reach of better broadband by 30 September.

TSLRIC modelling choices

Chorus also gave its latest views on potential economic cost modelling (TSLRIC) outcomes and other regulatory and government related matters.

Early in the Commission’s FPP process, a hybrid TSLRIC copper modelling approach was publicly outlined by global telecommunications consultancy firm Analysys Mason, work Chorus says it can continue with.

Modelling from Analysys Mason will be submitted to the Commission on 1 December 2014 in line with the Commission’s published timetable.

“Many of our investors have been eager to know how this work is progressing, so to assist the market in further understanding how this particular form of economic modelling technique may be approached, we have set out three scenarios derived from Analysys Mason’s modelling work,” says Mark Ratcliffe, CEO, Chorus.

“Under the first scenario, our work with Analysys Mason so far suggests that if we built a copper network that delivers the services provided by Chorus today, without re-using any existing infrastructure at all, it would cost around $16 billion.

“While that full valuation of the network provides a valid starting point for considering value, final FPP prices determined by the Commission are expected to be less given the range of matters upon which it will ultimately take a view.

“We also note that in the real world market, pricing would of course be constrained by market realities including the need for Chorus to compete with other access networks and technologies.”

Ratcliffe says the Commission has “engaged its own cost modelling firm” and it may model fibre costs instead of copper and the model will be the Commission’s own view of how to build a hypothetical new optimised network from scratch.

“The Commission will also decide various parameters that, combined with its modelling choices, will determine the final FPP prices,” he adds, insisting the Commission has not yet provided preliminary views on all parameters that it may use.

“As such, Chorus has also outlined two further scenarios where the parameters are applied in different ways.

“We have consistently said that we believe evidence does not support aggregate copper pricing below demerger levels of around $45 a month, and that rebalancing is likely between layer 1 and layer 2 pricing, and the progression of modelling continues to support this view.”

The Commerce Commission is scheduled to release draft FPP determinations on 1 December 2014.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags ChorusUFBbroadband

Featured

Slideshows

Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established and emerging partners on a memorable night in Auckland.

Reseller News ICT Industry Awards 2017 - Meet the winners...
Show Comments