Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

Chorus can close UFB funding gap to $250 million UFB
Posted on 14-Dec-2013 14:39 by Bill Bennett. | Tags Filed under: News.


Communications and IT Minister Amy Adams
Communications and IT Minister Amy Adams

Ernst & Young Australia’s report into Chorus’s ability to deliver on its broadband contracts says the company could reduce the funding gap to $250 million or less with “cash flow savings initiatives”.

The report was commissioned by Communications Minister Amy Adams to investigate whether Chorus was able to meet its obligations building two government supported broadband projects.

Chorus won contracts to build the lion’s share of the Ultrafast Broadband network and parts of the Rural Broadband Initiative project.

A Commerce Commission decision, following government dictated guidelines, called for a reduction in the cost Chorus could charge telcos to deliver copper-based services to customers. At the time Chorus said the price reduction could punch a billion dollar hole in its finances.

The independent report confirms this.

Adams says: “Copper price changes will have a significant impact on Chorus’ financial position, and the wide range of actions that Chorus can consider taking itself will not be sufficient to cover the funding shortfall to safeguard the UFB and RBI build commitments”.

She says the report contracts claims by lobbyists and campaigners elsewhere in the industry that these figures were overstated.

The report goes on to say Chorus could reduce the estimated funding gap from $1 billion to between $200 million and $250 million by implementing a number of cash flow savings initiatives.

A statement from the minister’s office says Crown Fibre Holdings and Chorus have begun discussions about possible contract adjustments to help close the funding gap.

Update:





comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

Speed limit when overtaking? Teach me please.
Created by nakedmolerat, last reply by Kyanar on 25-Oct-2014 01:10 (73 replies)
Pages... 3 4 5


House Auctions
Created by t0ny, last reply by mattwnz on 25-Oct-2014 00:18 (36 replies)
Pages... 2 3


Spark Socialiser
Created by freitasm, last reply by freitasm on 22-Oct-2014 18:39 (34 replies)
Pages... 2 3


VDSL, which router/modem sub $200?
Created by TeaLeaf, last reply by TeaLeaf on 24-Oct-2014 23:26 (16 replies)
Pages... 2


30 too old to get into IT?
Created by Interslice, last reply by shk292 on 24-Oct-2014 20:39 (16 replies)
Pages... 2


American legal jurisdiction in New Zealand
Created by ajobbins, last reply by gzt on 21-Oct-2014 14:58 (30 replies)
Pages... 2


iPad Air 2 and iPad Mini 3. Gonna get one?
Created by Dingbatt, last reply by tdgeek on 25-Oct-2014 01:10 (109 replies)
Pages... 6 7 8


5Ghz AP recommendations?
Created by ubergeeknz, last reply by sbiddle on 24-Oct-2014 12:42 (12 replies)