Menu
Beyond UFB: Chorus inks $450M network contracts

Beyond UFB: Chorus inks $450M network contracts

Visionstream and Downer in the frame as Broadspectrum misses out

Chorus inks major network deals looking beyond UFB

Chorus inks major network deals looking beyond UFB

Credit: Chorus

Chorus has inked new contracts with two service companies to undertake maintenance and expansion of its copper and fibre broadband networks. 

Visionstream will cover Auckland and all areas north of Auckland, while Downer will be responsible for the rest of New Zealand. 

The total approximate value of the contracts, which will run from 1 July to 31 March 2022, is about $450 million, subject to future volumes and mix of work. The new contracts are separate to the rollout of the UFB communal build and UFB fibre installations.

Downer separately told the stock exchange its share of the deal was worth approximately $220 million. 

Under the previous contracts, the equivalent work was done by Downer, Visionstream and Broadspectrum. 

Chorus said it had invested billions of dollars in upgrading both fibre and copper networks since 2011, delivering substantial improvements in speeds and reliability. 

Speeds on average increased tenfold, and the number of broadband faults experienced by customers each year have almost halved.

This enabled Chorus to take a fresh approach to sub-contracting its field force. 

Chorus GM network and field management Andrew Carroll said the new contracts are the first step in moving Chorus beyond the major UFB network build and connect programmes and into an operating model that provides the ongoing experience customers expect.

The contracts follow a tender process that focused on identifying the right partners to deliver the right mix of speed, quality and price. 

“Given their importance to our business, it is essential that our service companies have enough volume and scope of work to provide sustainable services and have the ability to invest in people and infrastructure," Carroll said.

"As such, we have chosen partners who we are confident will deliver the right overall results, not just the cheapest option."

The chief executive officer of Downer, Grant Fenn, said that the agreement would expand Downer’s delivery of extensive network maintenance and build services in New Zealand. 

“This contract doubles our geographic spread and we will work with Chorus on the construction and maintenance of their network," he said.

There are expected to be opportunities for Broadspectrum staff to move to Downer, who have indicated they will be expanding their workforce to support the contracted work.


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 VisionstreamChorusDowner

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