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Chorus Limited

  • March 2016
  • -
  • Paul Budde Communication Pty Ltd
  • -
  • 10 pages

Chorus is responsible for the modernisation of telecoms infrastructure in New Zealand, and is the key provider for the country's ambitious Ultra-fast Broadband initiative. Following the operational separation of Telecom New Zealand (now Spark) into three entities in 2008, Chorus became the business unit responsible for operating the Telecom NZ network and infrastructure. One of its roles was to sell network access to the Telecom retail division as also to market competitors. Since late 2011, with the operational separation of Telecom completed, Chorus has operated as a separately listed company on the NZSX and the ASX.

Pricing models for wholesale services have been amended on several occasions since 2012. The latest pricing model saw an increase in access pricing, which favoured Chorus's revenue stream but which also encouraged the main providers Spark and Vodafone to increase retail pricing for broadband customers from March 2016.

By the end of 2015 Chorus had completed 48% of the UFB build, which is to deliver Fibre-to-the-Premises (FttP) to 80% of New Zealanders by the end of 2019.

This report provides an overview of Chorus, including company analyses s well as operational data to December 2015 and financial statistics for H12016.


Key developments:
Cable, ADSL, fibre, UFB, FttH, FttN, UCLL regulatory fee structure, RBI, unbundled exchanges, capital expenditure, wholesale pricing review of December 2015; report update includes operational data to December 2015, financial data for H12016.

Companies mentioned in this report:
Spark NZ, Chorus.

Table Of Contents

Chorus Limited
1. Synopsis
2. Company information
2.1 Overview
3. Financial results
4. Operational results
4.1 Wholesale pricing overview
5. Company services
5.1 Infrastructure
5.2 Value added network services (VANS)
5.3 Field services
5.4 VDSL
6. Background information on Chorus and the UFB rollout
6.1 Demerger of Chorus and assets December 2011
6.2 Effects on UFB rollout
6.3 IP Network
6.4 The original NGN plan
6.5 FttN Network and cabinetisation plan
7. Company history
7.1 Brief timeline 2008 - 2015
8. Spark New Zealand (separate report)
9. Related reports
Table 1 - Chorus key financial operating results 2009 - 2016
Table 2 - Chorus operating revenue by segment 2012 - 2016
Table 3 - Chorus copper, UFB and RBI capex 2012 - 2016
Table 4 - Chorus fixed line connections 2012 - 2015
Table 5 - Chorus broadband connections 2012 - 2015
Table 6 - Chorus VDSL broadband connections 2012 - 2015
Chart 1- Chorus key financial operating results 2009 2016
Exhibit 1 - Chorus Limited at a glance
Exhibit 2 Overview of Spark New Zealand initial demerger details
Exhibit 3 Spark and the roadside cabinet program a brief overview

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