Ann: GENERAL: CNU: Chorus delivers step change in

• Release Date: 14/05/14 10:30
• Summary: GENERAL: CNU: Chorus delivers step change in NZ broadband capability
• Price Sensitive: No
• Download Document  6.56KB

					CNU
14/05/2014 08:30
GENERAL

REL: 0830 HRS Chorus Limited (NS)

GENERAL: CNU: Chorus delivers step change in NZ broadband capability

STOCK EXCHANGE ANNOUNCEMENT

14 May 2014

Chorus Accelerate delivers step change to New Zealand's broadband capability

Chorus has today announced a new set of broadband products designed to
deliver greater speeds, enhanced HD video capability, more choices for the
telecommunications industry and a clear path to fibre.

The Chorus Accelerate product range offers commercial copper and fibre
products. These products will be available alongside the standard regulated
products, allowing the industry to choose the products that best meet their
needs.

"The Chorus Accelerate range is a direct response to feedback from our
customers," said Mark Ratcliffe, Chorus CEO.  "We know that our customers
have been asking us for greater speeds, products that give them the
confidence to market value-added HD video services, more choices and better
value. Chorus Accelerate gives them all of this and more."

"Chorus Accelerate is an integrated portfolio of products. Each product
provides a logical step towards the fibre future, as well as ensuring that
New Zealanders enjoy the best possible broadband today.  Chorus Accelerate
also makes it much easier and better value for more end users to make the
switch to Chorus UFB fibre as soon as it is available in their area."

Investment in infrastructure

Chorus Accelerate will be powered by a multi-million dollar investment in
core Chorus infrastructure.

Chorus has today announced an investment in the Alcatel-Lucent 7950
Extensible Routing System (XRS) to handle the high growth in bandwidth demand
in our network and the additional capacity required to support the Chorus
Accelerate range.

The XRS network switch can handle up to 16 terabits of data per second, which
enables Chorus to provide service commitments for both new copper and fibre
services.

Chorus is the first communications infrastructure provider in the Asia
Pacific region to invest in this world leading solution.  This additional
capability builds on the $500m investment made in fibre to the node.

New fibre products

Chorus will launch three new product groups for fibre.

Fibre 100 will be priced at the initial wholesale price of $40 per 100/20
connection, making it the de facto entry level fibre plan.

Chorus will also introduce Fibre 200 - a range of 200Mbps fibre products for
end users who demand some of the fastest broadband speeds in the world, along
with Fibre Business, which includes a 1Gbps product available across Chorus'
fibre footprint.

"Fibre is the long term solution for broadband in New Zealand, and our new
products clearly set it apart from the copper-based products in terms of
speed and value.  Starting with a wholesale price of $40 for Fibre 100 is a
conscious decision to make it the most attractive option for both the
industry and end users as soon as fibre is available in our UFB areas."

Chorus Accelerate Fibre products will also be slightly over-specified for
their speeds, meaning that Retail Service Providers can be confident that if
they pay for 100Mbps as a wholesale product, the end user will see 100Mbps.

Boosted copper

Chorus is also offering more choices for the telecommunications industry on
its copper network.  The new copper products support a clear migration path
to fibre by expanding HD video capability.

"We know that the more bandwidth and better services people enjoy the more
they want, and we are confident that better copper will also mean more end
user demand for fibre," continued Mark Ratcliffe.

"We also know that our customers are very focused on developing video
services and these products will give them the confidence to market their new
video services with the assurance that the Chorus network will deliver the
experience that end users will love."

The two new copper products are Boost HD and Boost VDSL.

Boost HD includes a service commitment that there will be enough bandwidth
available in the Chorus network that the service Chorus provides to its
industry customers will allow for an HD video stream at all times.   The
service commitment applies to data over the Chorus network, and RSPs will
also need to provide adequate throughput to ensure their customers receive an
ideal HD video experience.

Boost VDSL is a VDSL-based product that includes a "fibre ready" installation
that will get the wiring within a property ready for fibre for an easier
upgrade once fibre is available.  The fibre ready installation will only be
available in Chorus UFB areas. Both Boost products require capable lines.

Around 90% of the Chorus broadband capable lines will be Boost HD capable,
and around 60% will be Boost VDSL capable.

Boost HD will be priced at the discounted wholesale rate of $44.98 until 1
December, the same as a standard broadband connection today. Boost VDSL will
be priced at the wholesale rate of $49.98.

Chorus will review both prices upon completion of the Commerce Commission's
Final Pricing Principle reviews for UBA and UCLL scheduled to be done by 1
December 2014. Chorus expects that both Boost products will be priced at an
appropriate premium to regulated Unbundled Bitstream Access (UBA) products.

Customer choice and speed to market

Chorus also remains committed to delivering its regulated broadband products
and reiterated its previous commitment that it will not throttle the
regulated broadband service to an unusable level in order to artificially
create demand for commercial products.

"Customers will be free to choose the products that best meet their needs,
whether they are from the regulated or the commercial product set," said Mark
Ratcliffe.  "We are excited to offer a new range of commercial products that
we believe respond to our customers' needs in a dynamic and commercial way.
Providing commercial products in addition to the regulated products also
means we can move much more quickly to meet our customers' needs as the
industry evolves."

Chorus will immediately commence a 60 day consultation period with the
industry to finalise the technical details of the product descriptions.

The company is set to launch the new fibre products on 1 July 2014 and the
new copper products on 1 September 2014, subject to market demand.

A table setting out more detail in respect of the new products is set out in
the attached announcement.

ENDS

For further information:

Ian Bonnar
Corporate Affairs Manager
Mobile: +64 (27) 215 7564
Email: [email protected]

Brett Jackson
Investor Relations Manager
Mobile: +64 (27) 488 7808
Email: [email protected]
End CA:00250396 For:CNU    Type:GENERAL    Time:2014-05-14 08:30:05