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Chorus to pay for difficult UFB installs

02 Nov 2012

Chorus has offered $20m investment for retail service providers to offer free installation to hard to reach homes.

The broadband provider 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.

But the additional funding will be used to cover the cost of connecting residences that are beyond these, ranging 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,” says 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."

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,” Crone says.

Chorus says the offer does not affect the capital expenditure guidance the company previously provided however, with an expected spend of between $450 and $480m 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 with the Crown providing debt and equity financing of up to $929 million.