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:

The President Of The USA - Who do you think?
Created by TimA, last reply by vexxxboy on 5-Dec-2016 07:24 (887 replies)
Pages... 58 59 60


Woooaaahh earthquake 2016-11-14
Created by Fred99, last reply by Pumpedd on 1-Dec-2016 11:50 (470 replies)
Pages... 30 31 32


Christmas. Bah, humbug.
Created by Rikkitic, last reply by alasta on 3-Dec-2016 13:43 (40 replies)
Pages... 2 3


'Quality' NZ news on the way?
Created by Rikkitic, last reply by alasta on 4-Dec-2016 09:49 (91 replies)
Pages... 5 6 7


Spark Ultra Fast Fibre MAX performance and discussion (Some might say Gigabit)
Created by Talkiet, last reply by sbiddle on 3-Dec-2016 21:15 (55 replies)
Pages... 2 3 4


Pike River - Seal or recovery?
Created by gzt, last reply by frankv on 4-Dec-2016 22:06 (69 replies)
Pages... 3 4 5


Gigabit cable now available
Created by sub, last reply by Scotty1986 on 2-Dec-2016 12:00 (712 replies)
Pages... 46 47 48


Best of both worlds finally - Plex on kodi
Created by davidcole, last reply by reven on 1-Dec-2016 21:00 (15 replies)