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- Release Date: 17/04/13 10:30
- Summary: GENERAL: CNU: Chorus signs fibre contracts with service companies
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CNU
17/04/2013 08:30
GENERAL
REL: 0830 HRS Chorus Limited (NS)
GENERAL: CNU: Chorus signs fibre contracts with service companies
STOCK EXCHANGE ANNOUNCEMENT
17 April 2013
Chorus signs fibre contracts with service companies
Chorus (CNU:NZX) today announced the signing of new contracts with two
service company partners - Visionstream and Downer - for the building of the
Ultra-Fast Broadband (UFB) network.
The new contracts relate to the work required to lay fibre optic cables in
the streets passing homes and businesses throughout Chorus' UFB deployment
areas. Work that Chorus has estimated will cost $1.7 to $1.9 billion through
to mid 2019.
Chorus GM Infrastructure Build Ed Beattie said the contracts are significant
because they give Chorus and its service company partners new commercial
constructs to drive cost efficiencies.
"This enables better planning for resources and materials, as well as giving
the certainty that will encourage investment into processes and systems that
will help get our roll out programme into a production line state," he said.
"One of the key changes is a shift to targeted cost incentives and shared
risks that will introduce a sharper focus on financial management and
increase coordination of deployment operations in the field.
"The contracts build upon our existing 10 year agreements with Downer and
Visionstream for work on Chorus' existing network and will ensure we are all
working towards continued efficiency," Beattie said.
The move to new service company contracts is in line with Chorus' half year
result update on UFB initiatives and each contract is estimated to be worth
approximately $500m over the six year period. The contracts have immediate
effect and will begin applying to the UFB deployment work Chorus has
scheduled to commence in July. The new contracts also include additional
amounts relating to Downer and Visionstream's work to deliver Chorus' part of
the Rural Broadband Initiative (RBI) programme.
Chorus is continuing negotiations with Transfield Services which is
responsible for construction in about 10% of Chorus' UFB deployment area.
Chorus had completed its construction work to take fibre past about 116,000
premises by the end of March. It aims to have built the network past 149,000
premises by July.
ENDS
For further information:
Melanie Marshall
Head of communications
Mobile: +64 (27) 452 6231
Email: [email protected]
Brett Jackson
Investor Relations Manager
Mobile: +64 (27) 488 7808
Email: [email protected]
End CA:00235258 For:CNU Type:GENERAL Time:2013-04-17 08:30:02
