ComCom trims Chorus spending ambition

Commerce Commission waves through $1.7b of Chorus' planned expenditure, holds back $172m

The Commerce Commission has given Chorus the green light to invest $1.7 billion over the next four years after cutting $172 million from the fibre company’s submitted plan. It says it disallowed spending that would have “flowed through to price increases for consumers”.

Chorus had earlier proposed spending of $1.9 billion over the next four years of the regulatory period that runs from 2025-2028.

That figure had already been pared back from the company’s original position which earmarked $190 million for network expansion. The company has not shelved those expansion plans but will move forward on a case-by-case basic with a series of individual capital expenditure proposals.

The $1.7 figure that features in the Commerce Commission’s final expenditure decision comes in at eight percent or $128 million more than the draft decision and $173 or nine percent before Chorus’ proposal.

Capital expenditure

Chorus’ expenditure breaks down as $1.1 billion capital expenditure and $790 million operating expenditure. The capex allowance is $14 million higher than the amount in the draft decision, barely a rounding error. The draft decision was for operating expenditure of $691 million.

Telecommunications Commissioner, Tristan Gilbertson says:
“We want to see ongoing investment in world-class infrastructure but are conscious that any expenditure we approve ultimately flows through to the prices Kiwi consumers pay for fibre services.”

Mr Gilbertson said that Chorus has provided further evidence to satisfy the Commission that expenditure of $1.722 billion is prudent and efficient.

In the wake of last year’s extreme weather events, Gilbertson says resilient infrastructure was a key consideration.

One New Zealand tables sustainability report

One New Zealand says its key sustainability achievements in the past year include a 24 percent reduction in greenhouse gas emissions.

The reduction is a highlight in the company’s 2024 Sustainability Report covering the year to March 2024. One NZ also clocked a 2 point increase in our independent sustainability benchmarking score to 73 from 61 in 2023. The benchmark is measured by Netherlands-based GRESB.

Nicky Preston, head of Sustainability and Corporate Affairs at One NZ says: “In August 2023, we refreshed our approach to ESG (Environmental, social, and governance) when we launched our current sustainability kaupapa, further defining our current strategy and goals, incorporating te ao Māori values and principles.

“The report outlines our efforts to reduce the intensity of our carbon emissions and increase our use of renewable energy, as well as support our customers and help enable decarbonisation within New Zealand via technology.

One NZ’s sustainability report also covers the company’s work on social sustainability and corporate philanthropy through the registered charity, Te Rourou, One Aotearoa Foundation. During the year more it donated $3.2 million to reduce youth disadvantage.

Palmerston North’s Advantage adds enterprise satellite coverage

Palmerston North-based business technology service provider Advantage says it is bringing enterprise-grade satellite connectivity to New Zealand. The company is working with Perth-based Sat.One, which is the Australia and New Zealand distributor for Eutalsat OneWeb, a LEOsat broadband service provider.

Advantage says it will recommend Sat.One connectivity as part of solutions delivered to its customers.

Unlike SpaceX’s Starlink, which is focused on direct-selling satellite broadband to residential and small business customers, Eutalsat OneWeb works with resellers and is primarily targeting enterprise and government customers, including defence applications. It also sells wholesale services to phone companies.

Brad Pearpoint, Advantage managing director, says his business’s goal is to offer stable connectivity anywhere in New Zealand with service level guarantees. He says Sat.One differs from competitors because its connectivity options are specifically designed for business use and supplied with associated support and assurances.

Full redundancy, independence

Advantage says this approach has two main user cases in New Zealand. The first is for those who need a fully redundant link, independent of any terrestrial network. Pearpoint says: “When Hurricane Gabrielle hit Gisborne, the cellular and fibre networks went down, leaving those areas stranded from a connectivity point of view. With Sat.One as a failover, organisations in the region would have maintained their communications.”

The second use case is for rural connectivity. Pearpoint says: “Our primary industries are among the biggest export earners and comprise 7 percent of GDP. With better connectivity, the full power of information technology is put within the reach of every Kiwi business – whether in Auckland, or out in Muzzle Station”.

Sat.One offers what it calls its “Resilient” service. This pulls on the resources of the multiple satellite constellation services within the company’s portfolio. This gives customers an ‘inter-constellation’ failover for true redundancy where critical applications demand it.

One New Zealand says nationwide satellite coverage on track

One New Zealand says its satellite partner SpaceX now has 100 Starlink direct-to-cell satellites in orbit. This means the telco’s advertised promise to offer full coverage across the nation by the year end is on track.

When it switches on the service will provide coverage on certain 4G VoLTE mobile devices that have line of sight to the sky. It will also work up to 12 nautical miles, about 22 km, out to sea.

There is no word yet about what the service will cost.

Sponsorship caution puts Nethui on hold

InternetNZ says it has postponed this year’s NetHui. The event was due to take place in Wellington at the start of October.

In a newsletter to InternetNZ members, chief executive Vivien Maidaborn says: “Feedback from sponsors and NetHui supporters is that this year has been a tough year for any additional expenditure.”

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