Chorus Hyperfibre pushes broadband past gigabit speeds

Hyperfibre cranks UFB through gigabit barrier

New Zealand is set to join the select band of countries with fibre networks running at speeds beyond a gigabit. Chorus says it aims to offer two and four gigabit per second services in some regions from February next year.

Chorus' Hyperfibre service will use the XGS-PON standard which can one day offer a 10gbps service. XGS-Pon is a symmetric technology. That means users will be able to upload and download at the same speed.

Not everyone will choose faster broadband, but trials so far have show there is demand for these services from the film production sector. There is an emphasis on areas where the fit industry works in the roll out schedule.

Staggered Hyperfibre roll-out

Chorus aims to roll out Hyperfibre in Queenstown, Arrowtown, Wakatipu, Wanaka and Cromwell in February. These areas will be joined in March by Courtenay Place, Johnsonville, Miramar and Wellington.

Other areas will be added over time with the entire Chorus UFB1 network ready for Hyperfibre by September 2020. All these dates are subject to regulatory approval.

Wholesale prices have not been fixed yet, but Chorus says customers can expect to pay a modest premium over today's gigabit prices.

Commerce Commission releases draft fibre regulations

The Commerce Commission released its draft decisions on a new regulatory regime for fibre networks. The new rules apply from the start 2022.

At the top of the agenda is a revenue cap for Chorus, the largest fibre wholesaler. The company will also be subject to minimum service availability and network performance standards.

All fibre companies, including Chorus, will have to publish performance measures as part of a practice known as 'sunlight regulation'.

Beyond these measures, the Commerce Commission has issued its draft decisions on 'input methodologies'. This is to become the basis of regulation and lays out the rate of return fibre companies are able to make on their assets. It also determines the value of the assets. The draft decisions include a higher allowance for risk on the allowed rate of return.

A final decision is due by the middle of 2020. At that point the Commerce Commission will set Chorus' revenue cap and minimum quality standards. It will also publish the disclosure rules for all fibre companies.

Chorus to provide RBI2 backhaul

Chorus says it has a ten-year agreement with the Rural Connectivity Group to provide backhaul fibre to new mobile sites being built under the second stage of the government's Rural Broadband Initiative. To deliver on the agreement Chorus and the RCG needed to design a new non-discriminatory fibre product that will now be available for other mobile networks.

Disney Plus widens NZ streaming options

Disney has launched its streaming service in New Zealand. The new channel will include movies and television shows from across the media corporation's stable. This includes Disney, Pixar, Marvel, Star Wars and National Geographic.

Apart from the brands, Disney's other point of difference is that it will offer more in the way of higher resolution 4K programming. This could have an impact on net traffic and TV hardware sales.

Subscription prices are pitched below Netflix at either $10 a month or $100 a year.

A terabyte a month by 2023

CommsDay reports on a Chorus presentation which forecasts fibre customers will chew through a terabyte of data each month by 2023. That's up from 360 gigabytes today. Ultra high definition television and high definition virtual realty apps will drive much of the growth.

Sky forecasts revenue drop as it repositions

Sky TV has told investors to brace for lower revenue and EBITDA in 2020. It now forecasts revenue in the range of $750 million to $770 million, down on this year's $795 million. The company expects 2020 EBITDA to land in the $170 million to $190 million range.

Part of the reason for this is Sky's US$40 million acquisition of RugbyPass. The company also points to investment in new content and production including the new Sky Sport News service. Sky says it will reshape the organisation, develop streaming services and reposition its brand. It has also committed to investing in grass roots sport.