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: Articles


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:

Chorus Fibre install
Created by MikeB4, last reply by kryptonjohn on 19-Oct-2017 14:24 (18 replies)
Pages... 2


Vodafone TV - Is this sky?
Created by wingbat45, last reply by DjShadow on 19-Oct-2017 13:52 (73 replies)
Pages... 3 4 5


KRACK - WPA2 essentially cracked.
Created by michaelmurfy, last reply by dejadeadnz on 19-Oct-2017 11:22 (73 replies)
Pages... 3 4 5


Obesity in NZ - OECD
Created by Fred99, last reply by gzt on 18-Oct-2017 16:36 (124 replies)
Pages... 7 8 9


Bad speeds to Apple services
Created by Swemoph, last reply by RunningMan on 15-Oct-2017 20:50 (16 replies)
Pages... 2


BBQ season is approaching again and I need a new one.
Created by gished, last reply by djtOtago on 19-Oct-2017 17:09 (47 replies)
Pages... 2 3 4


Windows 10 Fall Creators Update
Created by DjShadow, last reply by MikeB4 on 19-Oct-2017 14:08 (30 replies)
Pages... 2


Under -deck "roofing"
Created by kryptonjohn, last reply by kryptonjohn on 19-Oct-2017 14:41 (39 replies)
Pages... 2 3