Business UFB install costs

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Noodles

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#156042 17-Nov-2014 16:27

I was just talking to a friend who owns a building which is occupied by 4 businesses. One of those businesses wants to install UFB. Chorus have told my friend (as he is the landlord) that the cost is $11,000 to be charged to him with a $4,000 subsidy (so takes it down to $7,000).

Is this usual for business UFB installs now? I thought it was still being covered by the govt or has this changed? The install isn't that complex (single level, close to street, but is still a MDU), but I know a lot of work goes into an install.

Peppery

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#1177548 17-Nov-2014 19:56

It depends on the complexity of the install. The government only subsidises so much (that'd be the $4k amount they're covering) and the owner would need to contribute the rest. The 'free' installs are ones where the costs are under the subsidised amount. We had Chorus (well, some contractor for MDUs) out as we're in the same position, building owner and wanting UFB, bringing it in one floor and they indicated there'd likely be no extra charge as it was quite simple.

He did say that 3-6 tenants are considered a ROW instead of MDU technically but I am not sure on the specifics.

sbiddle

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#1177670 17-Nov-2014 22:39

It's perfectly normal.

Standard residential installs are free - everything else can be charged for.

richms

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#1177678 17-Nov-2014 23:05

It cost to get the power and copper phone into the building when it was built and it means it is more rentable so IMO go for it.

Richard rich.ms

CamH

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#1178071 18-Nov-2014 18:38

Unfortunately this is the case - There's a $1,000 subsidy per tenant in an MDU and everything else must be paid for by the landlord. Our building had a large install cost where Chorus wanted a $10,000+GST contribution being a multi level MDU with only 6 tenancies.