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:

Dotcom appeal to be livestreamed
Created by Rikkitic, last reply by networkn on 31-Aug-2016 13:34 (86 replies)
Pages... 4 5 6


The Universe, who is fascinated by that?
Created by tdgeek, last reply by MikeB4 on 31-Aug-2016 13:15 (92 replies)
Pages... 5 6 7


Housing crisis in Auckland
Created by thestokes, last reply by Geektastic on 31-Aug-2016 13:03 (47 replies)
Pages... 2 3 4


Insulation - much benefit of more than R3.2?
Created by Aredwood, last reply by mdf on 30-Aug-2016 21:38 (38 replies)
Pages... 2 3


3G / 4G network gateway
Created by SATTV, last reply by PhantomNVD on 29-Aug-2016 13:27 (16 replies)
Pages... 2


Galaxy Note 7 Announcement and Owners' Thread
Created by eracode, last reply by Kopkiwi on 31-Aug-2016 14:08 (423 replies)
Pages... 27 28 29


Greens' Proposed restrictions in Kiwi Saver?
Created by MikeAqua, last reply by MikeB4 on 31-Aug-2016 09:56 (168 replies)
Pages... 10 11 12


Should sky do this?
Created by surfisup1000, last reply by surfisup1000 on 31-Aug-2016 13:29 (11 replies)