CNU
01/11/2012 08:36
GENERAL
REL: 0836 HRS Chorus Limited (NS)
GENERAL: CNU: Chorus provides $20m fund for free UFB residential installs
STOCK EXCHANGE ANNOUNCEMENT
1 November 2012
Chorus provides $20m fund for free UFB residential installs
With more than 72,000 customers now within reach of Chorus' UFB network, the
company today announced that it will provide a $20 million investment for
retail service providers to offer free installation to their residential
customers.
Chorus already funds the first 15 metres of new trenching to connect a home,
or up to 100 metres of fibre where there is an available duct, or a single
overhead aerial span. The additional funding will be used to cover the cost
of connecting residences that are beyond these, up to 200 metres.
"We want to give our customers as much support as possible in encouraging
people to join the new network, particularly in the early stage of the UFB
rollout," said GM Marketing and Sales Victoria Crone. "New Zealanders are
still discovering the benefits of fibre and we want to help make it as easy
as possible for our customers and their customers to make the switch to a
fibre world."
"Our customers have asked for a solution on how to install fibre services to
homes beyond what is considered a standard distance. This fund, agreed with
Crown Fibre Holdings, goes some way to addressing customer needs, as we
continue to work on a sustainable longer term solution," Crone said.
Chorus says the funding will help it gain more insights to develop its
installation policies and experiences for end users.
"We've learnt that by clearly explaining the installation process and the
time it takes, home owners are comfortable with the work getting underway, so
we can connect them to ultra-fast broadband services," said Crone.
This offer does not affect the capital expenditure guidance Chorus has
previously provided. Chorus expects to spend between $450 and $480 million
on fibre capital expenditure this financial year. Chorus' cost of building
the UFB fibre network along streets is expected to be between $1.4 and $1.6
billion. The Crown is providing debt and equity financing of up to $929
million.
To date, Chorus has connected more than 700 homes and businesses to UFB
services and laid 1,500km of new network as part of this massive programme of
work. In all, Chorus will deploy some 17,000km of new fibre network to pass
more than 830,000 urban homes, businesses, schools, hospitals and medical
facilities throughout New Zealand by the end of 2019.
-Ends-
Contact:
For media queries, please contact:
Melanie Marshall
Head of Communications and Brand
+64 (0) 274526231
Email: [email protected]
For investor relations queries, please contact:
Brett Jackson
Investor Relations Manager
Email: [email protected]
+64 (0)4 498 9271
End CA:00229190 For:CNU Type:GENERAL Time:2012-11-01 08:36:08
