Chorus hits 500,000 fibre connections

Chorus says it now has 500,000 Ultra-Fast Broadband connections on its network. The wholesale network company also announced plans to cut wholesale prices for its fastest connection speed.

Fibre demand has accelerated in recent months. It took Chorus five years to connect the first 100,000 fibre customers, but the most recent 100,000 joined in just six months.

In September, Crown Infrastructure Partners released numbers showing there were 605,000 fibre connections nationwide across Chorus, Northpower, UFF, and Enable. That total would be higher today.

Broadband connection speeds rising

Customer connections are rising fast, and so are their connection speeds. Chorus says customers are moving from entry-level plans to higher speeds. To encourage this shift, Chorus will cut the wholesale price of gigabit fibre broadband connections for home users.

From mid-2019, the wholesale price for a home gigabit connection will drop from $65 to $60. A further reduction to $56 is scheduled for mid-2020. This will narrow the price gap between a standard 100Mbps plan and a gigabit plan, making the latter a more attractive option for many customers.

While a lower wholesale price sounds like good news for consumers, it is up to retail service providers to decide whether they pass some or all of the savings onto customers. Some may do so, while others may use the cut to increase their margins.

Chorus CEO Kate McKenzie says fibre broadband demand has been rising rapidly. She adds: “… even more so now as more content moves online and New Zealanders prepare to live stream the Rugby World Cup and other sporting events in 2019.”

Fibre connections on Chorus’ network by plan type

Another $40 million for rural broadband

Regional Economic Development Minister Shane Jones and Communications Minister Kris Faafoi announced that $40 million of the government’s $3 billion Provincial Growth Fund has been set aside to improve rural connectivity.

This money is on top of the $105m allocated for the RBI2 and the Mobile Blackspots Fund. It will be spend in the six regions identified as most in need of investment: Northland, Bay of Plenty, Tairāwhiti, Hawke’s Bay, Manawatū-Whanganui and the West Coast.

Jones says that in the Manawatū-Whanganui region it means almost every marae, home and business will be connected.

TCF moves on scam calls

The Telecommunications Forum has formalised processes for the industry to deal with small callers. The Scam Calling Prevention Code aims to help telcos move faster to block calls when scams are reported by the public.

The Code also allows for data sharing with other agencies such as NetSafe, Cert NZ and the New Zealand Police. Scam calls are on the rise. The TCF says that almost 8000 people reported a scam to NetSafe between January and September this year. Losses came to almost $25 million, that’s five times the reported loss a year earlier.

Auckland, Sydney Southern Cross link running 200 Gbps wavelengths

Southern Cross Cable Network has upgraded the link between Auckland and Sydney to handle 200 Gbps wavelengths. The move adds a further 6.4 Tbps capacity. Southern Cross says the upgrade also makes it possible to ramp capacity up or down as required.

The submarine cable operator says the extra capacity addresses fast growing demand. Southern Cross is also working on its Next project, which will add another cable that it expects to complete by 2020.

Nova latest energy company to offer broadband, phone services

Nova Energy says it will soon offer broadband and phone services. At the moment the company sells electricity and gas. the company's Smart Home plan will give customers a $300 credit if they sign for a 12 month unlimited broadband plan.

ComCom starts fibre regulation consultation

The Commerce Commission Is asking for industry submissions on the latest amendments to the Telecommunications Act as it moves to establish a new utility-style regulatory regime. Among other things this means setting a revenue cap and service quality standards for Chorus. It also establishes information disclosure rules for all wholesale fibre companies. Submissions are due by 21 December 2018.