Fibre uptake passes two thirds

UFB reaches new milestone as build nears final stages

New Zealand’s fibre uptake hit a key milestone with two-thirds of the premises covered by Chorus’s original UFB build now taking a fibre service. Uptake on this part of the network has risen from 65 to 66 percent in the fourth quarter of 2020.

That’s an extra 29,000 customers in three months. This is a year after fibre uptake hit 60 percent in many towns and cities.

Fibre uptake across the wider Chorus footprint, including UFB2 areas, sits lower at around 63 percent. The network operator says uptake remains highest in Invercargill, which is close to 75 percent. Other strong areas include Waiuku, Auckland, Nelson and Dunedin.

Roll out now more than 90 percent complete

The UFB roll-out is now more than 90 percent complete. Chorus adds coverage in Taumarunui, Hunterville, Cheviot and Amberley during the last quarter. The build continues to push into smaller towns as the programme nears its end.

Data use is climbing at the same time as increased uptake. Chorus reports that the average connection now uses around 390GB of data a month. That jumps to 460GB for fibre users. Customers who switch to fibre tend to consume more data, which reflects the shift to higher-resolution streaming and more cloud services.

The final part of the fibre roll-out remains the hardest. Around 13 percent of premises fall outside the current build. Extending the network further becomes more expensive as work moves into rural areas and remote pockets. Chorus says any decision to take fibre deeper into these places will need new funding and government support.

Hitting the two-thirds milestone shows strong demand for fibre and suggests there is still room for uptake to grow as more households shift away from older copper services and fixed wireless. The last stages of the project will be slower, but the wider trend remains clear. Fibre continues to anchor the country’s broadband infrastructure as the network approaches its final phase.

Trustpower mulls selling retail business

Trustpower says it is considering selling its retail operation to focus on electricity generation. The move could reshape the broadband sector. The power company is New Zealand’s third largest broadband service provider with around 108,000 customers. That’s a six percent market share. It also resells Spark mobile phone plans. Infratil, which is part-owner of Vodafone, is the majority owner of Trustpower and say it is supportive of the separation plan. It is itself currently a potential take-over target.

Rendell takes Kordia reins

Kordia has confirmed Shaun Rendell as the company’s group CEO. Until now he has been acting group CEO, taking over when former group CEO Scott Bartlett took sick-leave. Before that he was Kordia’s chief financial officer.

Spark, 2degrees increase mobile market share

Telcowatch says Spark and 2degrees saw an increase in market share in the last three months of 2020. Spark put on 0.8 percent to take its share to 35 percent. While its Skinny subsidiary lost 1.5 percent of market share, down to 7 percent, the company’s total share is at 42 percent. Vodafone fell 0.8 percent to 36 percent. 2degrees is on 23 percent market share.

Vodafone, Spark plan ethical advertising

Reporting at Stuff, Tom Pullar-Strecker reports that Vodafone and Spark have withdrawn advertising from Magic Talk radio. The move comes after presenter and former politician John Banks aired racist comments. Pullar-Strecker writes: “Vodafone spokeswoman Nicky Preston said the Magic Talk incident had prompted its wider review of its advertising policies.”

CommComm calls for fibre regulation feedback

An online survey run by the Commerce Commission aims to collect feedback from telecommunications stakeholders on fibre service regulation. With the Commission finalising rules, requirements and processes, the survey asks wholesale fibre customers about risks that could lower market competition.