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:

Mikrotik RB 3011 multiple port flapping (Title updated)
Created by RobBB, last reply by RobBB on 21-Feb-2017 19:59 (38 replies)
Pages... 2 3


geekzone ads are out of control
Created by 1101, last reply by freitasm on 21-Feb-2017 23:08 (34 replies)
Pages... 2 3


The President Of The USA: Donald Trump
Created by TimA, last reply by gzt on 21-Feb-2017 14:59 (3177 replies)
Pages... 210 211 212


Silly Cricket Scoring
Created by tdgeek, last reply by tdgeek on 21-Feb-2017 07:02 (45 replies)
Pages... 2 3


Android (FB) Messenger App Bugs/Issues
Created by TimA, last reply by tripp on 21-Feb-2017 19:45 (20 replies)
Pages... 2


Best way to network my computers
Created by Rikkitic, last reply by PaulBags on 21-Feb-2017 22:31 (19 replies)
Pages... 2


Setting up our own EFTPOS (2nd hand terminal)
Created by BlackGlove, last reply by Lias on 21-Feb-2017 16:25 (17 replies)
Pages... 2


Shameful politics, shameless politicians
Created by Rikkitic, last reply by MikeAqua on 20-Feb-2017 14:12 (106 replies)
Pages... 6 7 8