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UFB changes a mixed bag for uses, good for Chorus

UFB changes a mixed bag for uses, good for Chorus

Today’s changes to the Ultra-fast Broadband Initiative announced by Chorus are a mixed bag for broadband users while being generally positive for Chorus, says InternetNZ (Internet New Zealand Inc).

“We are pleased that Chorus and Crown Fibre Holdings have been able to agree some changes that look acceptable on first glance,” says InternetNZ CEO Jordan Carter.

“The mix of changes announced should help Chorus through the peak period of capital expenditure pressure the company faces in 2015/16, as they defer some investment costs into the future and should save some costs in the short and medium term.

“More flexible use of the CFH financial contribution is a welcome concession that won’t cost taxpayers more, but will help Chorus. More flexibility in the deployment schedule has the same effect, though it may mean some prospective users get fibre later than they would have done otherwise.

“For broadband users this is a mixed bag.

“Some people in multi-unit dwellings should get access to UFB faster – but if that means using existing high-speed Cat5e/Cat6 copper infrastructure instead of rolling out fibre, they may miss out in the long term on all the speed and reliability fibre offers.

“Extending the funding available to make sure that non-standard installs remain free to broadband users is a positive step which we welcome,” Jordan Carter says.

“As always the devil is in the detail. The exact way these changes are implemented will be critical in seeing whether they improve the situation for users or otherwise.

“We now await news of any further changes being discussed between CFH and Chorus, to see where these lead. We also urge Chorus in the other decisions it is contemplating to address its financial situation to make sure that existing broadband users on copper infrastructure don’t have their services cut or reduced in quality,” says Jordan Carter.

ENDS

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