Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Chorus signs UFB contracts; Govt to change security laws

Chorus signs UFB build contracts; Govt to change security laws

By Paul McBeth

April 17 (BusinessDesk) - Chorus, the telecommunications network operator spun out of Telecom, has signed contracts with Visionstream and Downer worth some $1 billion for those firms to build the nation's ultrafast broadband network, and is still in talks with Transfield Services.

The Wellington-based company inked two contracts each worth some $500 million over the next six years and include extra amounts for Downer and Visionstream to deliver part of the rural broadband initiative, Chorus said in a statement. The contracts are effective immediately and apply to UFB deployment slated for a July start.

Chorus is still negotiating with Transfield, which is responsible for about 10 percent of the UFB programme.

"One of the key changes is a shift to targeted cost incentives and shared risks that will introduce a sharper focus on financial management and increase coordination of deployment operations in the field," general manage infrastructure build Ed Beattie said.

Chorus lifted its estimates for the total UFB build in February to between $1.7 billion and $1.9 billion, from a range of $1.4 billion to $1.6 billion previously flagged due to unexpected differences in costs across the country. It's trying to rein in those ballooning costs, and is looking at using alternative methods, such as overhead lines, to do so.

Chorus has completed construction work to take fibre past about 116,000 premises by the end of March, having passed 88,590 premises as at Dec. 31. It's aiming to pass 149,000 by July.

The company won a $929 million subsidy from the government to build the UFB network after Telecom agreed to structurally carve out the network operator.

The shares were unchanged at $2.65 yesterday.

Meanwhile, Telecommunications Minister Amy Adams has announced changes to the law governing interception of telecommunications by and behalf of intelligence agencies and the police.

The changes to the Telecommunications (Interception Capability) Act 2004 will create a new formalised network security regime.

"The proposed changes will mean network operators will be obliged to engage with the government through the Government Communications Security Bureau on network security, where it might affect New Zealand’s national security and economic well-being," said Adams.

These requirements will be backed by a graduated enforcement regime, with escalating responses available if significant national security risks are raised.

“Updating the legislation will ensure that New Zealand’s telecommunications companies have a clearer understanding of how to meet their interception obligations while ensuring network infrastructure remains secure, as we move to an increasingly online world.”

Privacy requirements imposed on telecommunications companies will remain unchanged, while protocols involving police, intelligence and security agency interceptions are dealt with under separate legislation and will also be unchanged.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news