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Chorus Limited


Attention: There is an updated edition available for this report.

Chorus is now a provider of fixed-line access and telecommunications infrastructure after it was demerged from the incumbent operator, Telecom back in late 2011. The new company and its operations are profiled in this report.

Since Telecom New Zealand’s operational separation into three entities back in 2008, Chorus, was the business unit responsible for operating the Telecom NZ network and infrastructure. One of its roles was to sell network access to Telecom retail as well as the competitors in the market. By late 2011 with the operational separation of Telecom completed, Chorus is now separately listed company on the NZSX and the ASX. The demerged Chorus is now the largest provider of fixed-line access and telecommunications infrastructure across the New Zealand landscape.

A new pricing model for its wholesale services has been mandated in late 2012 with some prices reduced immediately while others are to take effect in 2014.

In 2012 and for many years to come Chorus is now rolling out fibre to many regions for the Ultra-Fast Broadband Network (UFB). The UFB plans to deliver fibre-to-the-premise (FttP) to 75% of New Zealanders by end-2019.

In this report we provide an overview of the company with analysis, operational and financial information and statistics in text, tabular and easy-to-read chart formats.

The other major telecoms players – Telecom New Zealand, Vodafone New Zealand, Kordia, TelstraClear and also 2degrees are all covered in separate reports .

Key developments:

Cable, ADSL, fibre, UFB, FttH, FttN, UCLL regulatory fee structure, RBI, unbundled exchanges, capital expenditure.

Companied covered in this report include:

Telecom NZ, Chorus.


1. Synopsis
2. Company information
2.1 Overview
3. Financial results
3.1 Current year
3.2 Statistical overview
4. Operational results
4.1 Current year
4.2 Statistical overview
4.3 Wholesale pricing overview
5. Company services
5.1 Infrastructure
5.2 Value added network services (VANS)
5.3 Field services
6. Background information on Chorus and the UFB rollout
6.1 Demerger of Chorus and assets – December 2011
6.2 Effects on UFB rollout
6.3 Transition period
6.4 IP metwork
6.5 The original NGN plan
6.6 FttN Network and cabinetisation plan
7. Company history
7.1 Brief timeline – 2008 - 2012
8. Telecom Corporation of New Zealand (separate report)
9. Related reports
List of Tables, Charts and Exhibits
Table 1 - Chorus key financial operating results – 2012
Table 2 - Chorus key financial operating highlights and annual change – 2011 - 2012
Table 3 - Chorus operating revenue by segment – 2012
Table 4 - Chorus capital expenditure by market segment and market spend mix – 2012
Table 5 - Chorus key operating results – 2012
Table 6 – Chorus fixed lines by segment – 2012
Table 7 – Chorus broadband lines by segment – 2012
Table 8 – Chorus operational inputs – wholesale prices by line segment – 2012; 2014
Table 9 – Chorus fibre wholesale prices by segment – 2012
Chart 1 – Overview of Chorus share price trending – 2011 - 2012
Chart 2 – Overview of Chorus versus Telecom share price trending – 2011 - 2012
Chart 3 – Overview of Chorus key financial operating highlights – 2011 - 2012
Exhibit 1 - Chorus Limited at a glance – 2012
Exhibit 2 – Overview of Telecom New Zealand initial demerger details
Exhibit 3 – Telecom and the roadside cabinet program – a brief overview

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