From 2022, our ongoing investment in fibre services will be governed by new regulatory arrangements. These require us to submit a business plan for those services to the Commerce Commission. We are seeking your input to help ensure our plans deliver the best network for New Zealand.
What are the details
On Thursday 17th December 2020 we submitted our first Price – Quality proposal for Regulatory Period 1 to the Commerce Commission.
This proposal sets out our proposed plans for the three years from 1 January 2022, known as regulatory period 1 (RP1). Our proposal relates to fibre fixed line access services regulated by the Commerce Commission. It reflects feedback from our consultation session earlier this year as well as feedback gathered through product and other customer engagement.
You can find the headlines of our proposal in our release to the NZX here. In summary, we plan continued investment to:
- complete UFB build and connect consumers to fibre
- meet the evolving needs of consumers and retailers, including maintaining quality of service while meeting strong demand for higher speed services and growth in data use
- evolve our business as we shift from UFB build to optimising our fibre network and services.
In RP1 average annual expenditure declines by approximately 29% across the period. This is mainly driven by completion of the UFB network build and slowing connection growth. Cost per connection declines for capital and operating expenditure by 9% and 8% respectively, reflecting higher connection volumes and improved efficiency.
We expect our proposal to be published by the Commission in early February. The Commission intends to consult during 2021 as part of its evaluation of our proposal and reach a final decision late in 2021. We will provide further updates early in 2021 and look forward to further engaging with you.
We are particularly keen to ensure we design processes that engage stakeholders across our customers and the community, large and small, rural and urban, policy and practice.
We will update this page and communicate further as we progress. In the meantime, if you have any further questions or feedback, please email RP1@chorus.co.nz, refer to the people below, or contact your Account Manager.
During March and April, we ran a first round of engagement focused on our investment plans and the choices we can make about our level of investment. You can find information from the first round under the ‘support’ tab above:
- Consultation paper
- Online forum slides and notes
- Frequently asked questions