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Govt to assess Chorus' financial position ahead of UFB roll-out

07 Nov 2013

Communications and Information Technology Minister Amy Adams has today instructed her officials to commission an independent assessment of Chorus’ financial position.

Writing to Chorus informing the company of her decision, Adams is also seeking its capability to deliver on its contractual commitments under the Ultra-Fast Broadband and Rural Broadband Initiatives.

“In recent weeks, I have had the Ministry of Business Innovation and Employment (MBIE) work with external consultants to carry out an independent analysis of Chorus’ financial position across a range of pricing options, based on publicly-available information," Adams says.

“To complement this work, I have decided to seek an independent assessment at arm’s length from the Government.

“In order to properly assess the range of options before the Government, I have directed MBIE to work with Crown Fibre Holdings to commission independent advice to the Government of Chorus’ financial position and capability to deliver on its contractual obligations with the Government.”

The review would assess the impact of the Commerce Commission’s decisions on both the Unbundled Copper Local Loop and the Unbundled Bitstream Access prices on Chorus’ ability to deliver on its contractual commitments under the Ultra-Fast Broadband and Rural Broadband Initiatives.

As part of the review, the consulting firm would be asked to assess the scope for Chorus to manage the impact within the constraints of the reduced revenue, and if required, a range of alternative options.

At the end of the review, the report would be provided directly to Adams, and a copy of the report released publicly.

Once the report is received and released, the Government says it will consider its next steps.