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Ernst & Young: Chorus may not meet UFB commitments
2013-12-05 01:15:00| Telecompaper Headlines
(Telecompaper) The Commerce Commission's copper price changes are forecast to have a significant impact on Chorus' financial position. Absent further action, Chorus is at risk of not meeting its contractual broadband commitments, after taking into account a range of actions Chorus can take itself. The New Zealand government has received a verbal briefing from Ernst & Young on its findings on whether fixed-line network operator Chorus can deliver on its Ultra-fast Broadband (UFB) and Rural Broadband Initiative (RBI) contractual commitments with the government, in light of the Commerce Commission's decisions on final wholesale prices for copper-based broadband services. While the quantum of the shortfall is still being finalised and will be outlined in the final report, Ernst & Young has indicated it is unlikely to alter the high-level findings, ICT minister Amy Adams said in a statement. The government expects that the next step will be for Chorus to approach Crown Fibre Holdings to discuss specific contract provisions. Chorus has confirmed it will work with Crown Fibre Holdings on the UFB contract.
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Category:Telecommunications