Chorus spending $40m to expand fibre network to 10,000 more premises

SYDNEY, AUSTRALIA: Chorus, the largest telecommunications infrastructure company in New Zealand, has announced its plans to extend its fibre broadband network to another 10,000 premises by FY25.

The company has submitted an update to the Commerce Commission, the regulatory authority for the telecommunications sector, regarding its proposed investment for the next four years.

The fibre expansion will cost about $40 million, excluding the connection costs from the premises boundary to the building.

The 10,000 premises are on the edges of Chorus’ existing fibre network and are commercially viable under the current regulatory and policy framework. About 60% of them are not connected to Chorus’ copper network.

Chorus CEO JB Rousselot said that customers prefer fibre over other technologies as it offers fast, reliable, and resilient service. He added that the new areas to be covered include suburbs and communities just outside the current fibre footprint and places like Milford Sound, where a government-funded backhaul link has been recently completed.

Rousselot also said that Chorus has revised its regulatory proposal to reflect the confirmation of the 10,000 premises and the reduced amount of investment that falls within the new regulatory period.

He said that there is still about $200 million of investment that would be needed to extend the fibre network to another 30,000 premises, but this is contingent on pricing, market and regulatory developments.

He said that Chorus has removed this amount from its main proposal and would submit it separately if and when the conditions are met.

Chorus’ total capital expenditure proposal for the 2025 to 2028 regulatory period is now approximately $1.3 billion (nominal) as a result of this update, down from the
previously proposed $1.5 billion.