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CHORUS LIMITED — Investor Presentation 2013
Oct 22, 2013
64680_rns_2013-10-22_4632b6d2-266b-4e5f-9ca4-b84464c057dc.pdf
Investor Presentation
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Chorus Limited Level 9 Datacom House 68-86 Jervois Quay P O Box 632 Wellington New Zealand Email: [email protected]
Wednesday 23 October
Chorus to consult on all new faster Ultra-fast Broadband products
Chorus has today proposed a new range of Ultra-fast Broadband (UFB) products, giving Retail Service Providers (RSPs) the opportunity to offer even faster speeds and better value over fibre.
Chorus will now commence a period of consultation with the industry with the aim of having the new products available by 1 January 2014. The new products will be made available in addition to the current fibre products that are specified under the Crown Fibre Holdings contract.
RSPs will then be able take these wholesale inputs and develop products and services to sell to end users.
The proposals include fibre broadband at 100mb/s download and 20mb/s upload at $40, as well as offering a new 200mb/s product at $55.
“We are now two years into the roll out of Ultra-fast Broadband and we will be regularly improving our product offerings,” said Victoria Crone, GM Marketing and Sales, Chorus.
“With this move we are aiming to optimise average revenue per user and provide more choice. We are excited to be bringing some of the fastest broadband speeds in the world to New Zealand and we believe these enhanced products will really drive home the benefits of investment in fibre infrastructure.
“UFB has the potential to transform New Zealand’s economy, our communities, and the way we connect to the rest of the world. At the completion of the UFB roll out in 2019 we believe New Zealand will be a top 10 broadband country and continually improving the speeds and capability offered by fibre will be an important part of achieving that goal.”
Chorus is investing around $3 billion with up to $929 million of Crown financing that will eventually be repaid to deliver fibre optic broadband infrastructure directly to more than 800,000 schools, businesses, medical facilities and homes.
The proposed new product line-up includes the following. Note some prices change over time:
| Speed in mb/s | Wholesale Price |
|---|---|
| (Download/Upload) | |
| 50/20 | $37.50 increasing to $42.50 by 2019 |
| 100/20 | $40 increasing to $45 by 2019 |
| 100/50 | $45 increasing to $49.90 by 2019 |
| 100/100 | $50 |
| 200/20 | $55 |
| 200/100 | $60 |
| 200/200 | $65 |
| 200/200 Business | $175 |
The key current products are:
Speed in mb/s Current Wholesale Price (Download/Upload) 30/10 $37.50 increasing to $42.50 by 2019 100/50 $55 decreasing to $49.90 by 2019 100/100 Business $175
In addition, Chorus is also consulting on making new combined fibre and copper products available to Retail Service Providers (RSPs).
“The industry is in an early transition phase and we need to ensure Telecommunications Services Obligation (TSO) and contractual obligations are met,” said Vic. “There are also some early transitional issues relating to voice, medical and other alarms, and Sky TV settop boxes.
“So to promote early uptake of fibre and to allow time for these other issues to be worked through, Chorus is consulting with all stakeholders on transitional combined fibre and copper products for a proposed two year period.
“In particular, medical alarms are services offered by charities who do not have a lot of spare money to develop fibre-based alternatives, and we will be working closely with them to support them in their transition to fibre.
“Fibre is the future and we are strongly committed to offering products to our customers that make it as easy as possible for people to make the upgrade and enjoy all the benefits of fibre-based Ultra-fast Broadband,” she said.
ENDS
Ian Bonnar Corporate Affairs Manager Chorus [email protected] +64 27 2157 564
Brett Jackson Investor Relations Manager Chorus [email protected] +64 27 488 7808