Menu
Reporting good half-year, Chorus issues warning over "copper shutdown" claims

Reporting good half-year, Chorus issues warning over "copper shutdown" claims

Chorus is concerned consumers are being misinformed about the end of copper services

JB Rousselot (Chorus)

JB Rousselot (Chorus)

Credit: Supplied

Telco network company Chorus reported a net profit after tax of $31 million, up slightly form $30 million in the corresponding period of 2019.

The result came off lower operating revenues, down to $483 million from $489 million, however, operating expenses were also well down at $151 million compared with $171 million in 2010.

Lower revenues was attributed to a reduction in field services activity requested by third parties for network relocation which was matched by a corresponding decrease in other network costs.

Growth in earnings before interest, tax and depreciation ($332 million compared with $318 million) was achieved through a combination of operating cost reductions and strong broadband connections growth.

New CEO J B Rousselot warned that while the number of disconnections from Chorus' fixed line network slowed markedly in the period, mobile network operators continued to promote their own fixed wireless services as an alternative.

Rousselot said Chorus remained concerned that "the pending shutdown of copper" was being cited incorrectly to customers as a reason to move.

“As we’ve previously said, customers should be clear that we have not announced any timeline for switching off our copper network," Rousselot said.

"If we decide to do so in the future, we’ll communicate it well ahead of time and it would be on a street-by-street basis only where fibre is available as an alternative.” he warned.

Chorus has completed the first phase of the Ultra-Fast Broadband (UFB) rollout, marking the beginning of the wind-down of Chorus’ communal fibre build programme to 28 towns and cities. 

Fibre uptake was at 58 per cent within that zone.

The second phase of the fibre build, UFB2, was around 40 percent complete and there were now just 150,000 premises remaining to be passed by December 2022, Rousselot said.

Fibre uptake in that zone was 34 per cent.

In January, the average household data usage on Chorus’ fibre network was 372 gigabytes, up from 342 in June, 2019.

Customers were increasingly conscious of the limitations of broadband plans with capped data allowances.

“With streaming services like Disney+ increasingly making ultra-high definition, or 4K, content available to customers at no additional cost and online gaming without a console or downloads on the horizon, we expect bandwidth demand to step up yet again," Rousselot said.

Thirteen per cent of fibre customers – up three percentage points in the last six months – have opted for a gigabit plan.

Chorus increased its full-year EBITDA guidance to a range of $640 million to $655 million, from a prior range of $625 million to $645 million.

Dividend guidance was unchanged at 24 cents per share.


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 TelecommunicationsfibreChorusultra-fast broadband

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments