23 May 2012

$1b broadband investment by Chorus

7:17 pm on 23 May 2012

Chorus is planning to spend almost $1 billion for the next couple of years to roll out broadband networks throughout the country.

In an update to investors on Wednesday, Chorus signalled it will spend up to $355 million for the June 2012 financial year and between $560 - $610 million the year after.

The Government is investing $1.5 billion in the fibre network to main centres and $300 million on upgrading the rural broadband network, over the life of the projects.

Chorus will build the majority of the ultra fast broadband network.

Chief financial officer Andrew Carroll says Chorus has completed 5% so far.

Mr Carroll says up to 42,000 premises should be ready to be hooked up by the end of June, with another 12,000 underway or close to completion.

He says the initial cost of rolling out a fibre network is nearly double the $1700 per premises average cost, but that will come down over time.