Chorus announces wholesale fibre price cuts, lockdown debt support package

19 Jun 2020

New Zealand-based wholesale fixed line provider Chorus has updated retail service providers (RSPs) on planned changes to the pricing of its wholesale fibre products over the next three months, as well as details of a NZD2 million (USD1.29 million) fund to provide relief for RSPs who chose not to cut off customers who were unable to pay during the COVID-19 lockdown. Under the plans gigabit wholesale pricing will be reduced from NZD60 a month to NZD56 from 1 July 2020, while small business fibre pricing will be cut by NZD3 a month to NZD52. Chorus previously announced in March that the annual regulated CPI increase to fibre products will be delayed until 1 October 2020, at which point the price for 100Mbps fibre will increase from NZD46 to NZD47.15. The reduced pricing and delayed increase are expected to deliver savings of around NZD10 million to RSPs.

Chorus CEO JB Rousselot claims the changes strike the right balance between passing on savings to RSPs, while still enabling ongoing investment in infrastructure. ‘We are conscious of the critical role Chorus infrastructure played during the lockdown, and we believe this mix of pricing changes will support RSPs, allow Chorus to continue to invest in the capacity, reach and resilience of the fibre network, and also enable more customers to benefit from higher specification plans,’ he said.

New Zealand, Chorus (New Zealand)