New plans boost options for Chorus, consumers

Suzanne Kinnaird.
Suzanne Kinnaird.
New copper and fibre plans to be launched by Chorus would offer increased options for consumers wanting an improved internet experience, Forsyth Barr broker Suzanne Kinnaird said yesterday.

The plans were part of the new ''Chorus Acceleration'' range and took advantage of the investment the lines company had made in backhaul infrastructure since its demerger.

The new copper plans were designed to guarantee an improved and more consistent performance, she said.

The new fibre plans would allow service providers to offer products with better specifications than those of the regulated services.

Chorus would be able to capture more value by offering higher-priced plans.

''An advantage for Chorus in offering these discretionary commercial plans is it provides greater flexibility in the terms and conditions Chorus offers. This is particularly important in regard to pricing - which Chorus can set for commercial products - and the service-level agreements for areas such as provisioning, as regulated services have strict criteria.''

Chorus appeared to be hoping its Fibre 100/20 plan would become the default entry-level fibre plan at $40 a month compared with the regulated 30/10 plan at $37.50 a month, Ms Kinnaird said.

Final pricing for the new copper plans would not be determined until the Commerce Commission reviews were complete.

''Our valuation assumed Chorus would launch premium plans at some stage. The new plans will be available to service providers between July for fibre and September for copper. It will then take time for the service providers to build products for consumers. As a result, we do not expect any significant volumes until the second quarter of 2015,'' Ms Kinnaird said.

Chorus shares last traded up 2c to $1.70.

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