Chorus sets record with 50,000 new fibre connections

Chorus installed 50,000 new fibre connections in the September quarter, setting a record for the number of connections in a single quarter. During this period, the uptake rate climbed from 45 percent to 50 percent.

The total number of fibre connections is up 46 percent compared to the same time last year. Fibre now accounts for a third of all Chorus’s 1.5 million connections.

Copper connections decline

Slower-speed copper ADSL connections have fallen 28 percent over the past year. There are now 402,000 ADSL connections, with some customers switching to faster VDSL technology. Chorus reported a 5.1 percent rise in copper VDSL connections.

The company lost 19,000 connections during the quarter and 75,000 over the year, a 4.7 percent drop. Most of these disconnections were customers in non-Chorus fibre areas switching from copper to fibre. Chorus says this decline was expected.

Demand for faster speeds grows

There is a clear shift towards faster plans and greater data use. The number of gigabit connections on the Chorus network has risen 20 percent on the previous quarter to 36,000. Most customers—around 70 percent—are now on 100 Mbps plans, while 50 Mbps connections have fallen from nearly half to just one-sixth of total connections over two years.

Data consumption on the rise

Seven in ten broadband connections are now on unlimited data plans, contributing to increased data consumption. In the September quarter, the average data use per connection reached 221 GB, up from 210 GB in June.

Fibre users consume even more, averaging 307 GB per month. Chorus attributes this to the rise in streaming video, with network usage peaking at 8:30 p.m.

Subcontractor employment under review

Chorus has responded to a Labour Inspectorate investigation that found subcontractors breach employment standards by commissioning an independent review into their practices.

Former deputy state services commissioner Doug Martin, of Martin Jenkins will carry out the review. Chorus subcontracts its installation and network build work to VisionStream, Downer, Broadspectrum and UCG. These companies often subcontract their work to smaller operators.

Chorus CEO Kate McKenzie says the company expects all its primary contractors to co-operative with the independent review.

Spark offers twist on unlimited broadband plan

Spark is offering an unlimited broadband with prices that reduce for customers only using modest amounts of data during a month. Called the Unplan, there are versions for user who do or don't want bundled entertainment packages as well as for both fibre and wireless broadband.

The simple, non-entertainment version of Unplan costs $85 a month for unlimited fibre broadband. The price drops to $75 if the account uses less than 120 GB of data and to $65 if data is less than 60 GB. Prices for Unplan Entertainment are $10 higher.

Given the average fibre user now gets through 300 GB a month, the plan discounts are only likely to affect a small number of users.

Chorus, Nokia work on 130 Mbps VDSL roll out

Chorus and Nokia are working on the latest version of VDSL2 vectoring which could see copper broadband users get speeds as high as 130 Mbps. The vectoring upgrade uses noise-cancelling technology to remove the cross talk interference found when many signals share the same copper connection. This enables higher speed.

The technology means people in areas outside the UFB footprint will be able to get fibre-like speeds. Among other things this will allow them to watch high quality streamed video.

Chorus head of Network Technology Martin Sharrock says getting the fastest possible broadband experience to customers is a priority. "Vectoring has improved average VDSL downstream speeds by over 40 percent and upstream speeds by over 30 percent. This is especially important for rural New Zealand where fibre to the home has not yet been planned."

Federico Guillén, president of Nokia Fixed Networks, said: "Nokia's copper solution with vectoring technology compliments Chorus' fibre roll-out and provides another way to deliver significantly higher speeds that enhance the way customers experience digital content."

TeamTalk forecasts flat earnings amid network roll-out

TeamTalk says it expects net profit for the year to June 2019 will come in broadly in line with the $4.4 million it reported earlier this year. The company says this will come despite higher operating costs and investment. Last year TeamTalk sold Farmside, its rural RSP business to Vodafone. It is now rolling out a new nationwide digital radio network.

The company says it is on track to start undergrounding its Citylink fibre network in Wellington's CBD later this year. It aims to use Powerco gas ducts for the job.

Privacy Commissioner calls for repeal of unused information matching provisions

Privacy Commissioner John Edwards wants the government to repeal of 22 information matching provisions. The provisions allow organisations to share information in ways that would normally breach the Privacy Act’s information privacy principles.

A recent report found that many of the provisions are never used. Edwards says: “I am concerned these exceptional powers have been sought by officials, agreed to by ministers, enacted by Parliament, and then never used. It shows up a weakness in the system and demonstrates the importance of having robust policy development procedures in advance of enacting such provisions.”