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

 


Chorus and Crown Fibre Holdings agree UFB improvements

Chorus and Crown Fibre Holdings agree package of UFB improvements

Chorus today announced a package of improvements to the UFB initiative have been agreed with Crown Fibre Holdings that ensure the roll-out is more cost effective, provides better outcomes for end users and eliminates some barriers to take-up.

The initiatives do not require any additional funding from CFH, change the underlying contractual obligations to pass all premises in Chorus’ coverage area before December 2019, or change the network requirements.

The two organisations have been working together, as requested by Communications and Information Technology Minister Amy Adams in December 2013, to take the lessons learned from the first two years of the UFB initiative and make a series of improvements that will benefit all parties.

“This initial set of initiatives will help Chorus to deliver UFB faster, smoother and more cost effectively,” said Andrew Carroll, Chorus CFO. “While Chorus is firmly focused on managing its costs, both parties have worked on the basis that we need to find innovative ways to deliver better outcomes, and that would require a degree of give and take.

“We all want UFB to be an enormous success and these improvements are an important step towards that.

“They give Chorus a greater degree of flexibility to manage its own costs effectively while still achieving the same outcomes and also facilitating the uptake of UFB. In particular, this flexibility will enable Chorus to better manage its cash flow through the peak of the balance of the capital intensive period of the build, as well as addressing some of the $1 billion funding gap.

“There is no one silver bullet that will address this issue, but several small incremental changes all help towards navigating a very challenging period. At this stage it is not possible to put a specific dollar value to Chorus on the changes as it is dependent on a range of factors, but we thank CFH for its flexibility in supporting Chorus.

“While some of these initiatives have been accelerated by the funding gap Chorus faces, several of them were already under discussion as both parties were looking to further streamline the build.

“We will continue to work closely with CFH to identify further improvements that enable both parties to deliver great outcomes for New Zealand,” he said.

The changes are effective from 11 March 2014.

Summary of initiatives

Deployment flexibilityWhile the agreed completion date for each candidate area does not change, Chorus now has greater flexibility in how it phases the rollout within those timeframes. Key deliverables of Minimum Annual Build and Priority Premises by Dec 2015 (100% of schools and hospitals, and at least 90% of business premises) will be met.

For example, Chorus now has greater flexibility to manage the build programme in conjunction with local councils and other utilities to optimise cost and minimise any disruption in the community.

Better matching time of CRH investment to Chorus cost of buildCFH has agreed to subscribe for a portion of the CFH securities on a monthly basis as work is completed, better aligning receipt of Chorus’ cash flows with its outgoings, with the balance paid on completion of stages and User Acceptance Testing. This will allow Chorus to manage its cash flow more effectively. So long as a number of conditions continue to be met regarding Chorus’ financial position this will apply for an initial period to June 2015 and will be reviewed further after that.
Pre-fibred premisesIn meeting the Priority User target of December 2015, Chorus will have greater flexibility in the deployment of UFB in areas where Chorus already has an extensive fibre footprint.

This initiative defers UFB build in these areas to later in the programme and relates to around 12,000 premises. Chorus will continue to connect customers to existing fibre on demand.

Fibre to the building (FTTB)Chorus may deliver UFB services in Multi-Dwelling Units (MDUs) with common communications rooms using Fibre to the Premises (FTTP) and in-building reticulation where Cat 5e cabling exists. Where existing cabling isn't sufficient to deliver requested UFB services Chorus will continue to reticulate using fibre.

This solution will reduce the cost of installations, including cost that may be chargeable to the building owner, while still delivering UFB services, and potentially eliminate some consent requirements that delay connection. The increased flexibility should lift UFB uptake.

Greenfields reticulationChorus will charge developers for reticulation of Greenfields developments as it does in the non-UFB areas of the country to a maximum of $900 per Premises.

Chorus already charges for Greenfields Reticulation in non UFB areas.

NSI contributionChorus has agreed to increase its Non-Standard Installation Fund by $8m.

This will provide the industry with greater certainty regarding installation costs, giving them more confidence when marketing fibre services.

Marketing fundIn line with the above increase in the Non Standard Installation fund contribution, Chorus will reduce its own fibre marketing spend from $5m per annum to $2.5m.

Chorus will focus its marketing efforts into direct tangible marketing for the Network, such as Gigatown, which has proven extremely successful at raising awareness of the potential of NZ’s fibre future.


ENDS

- See more at: http://www.chorus.co.nz/chorus-and-crown-fibre-holdings-agree-package-of-ufb-improvements#sthash.ewU4X3cE.dpuf

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news