Shares in Chorus continue to tumble as the Government seeks independent advice on whether the company can complete the rollout of the ultra fast broadband network.
The Commerce Commission ruled this week that the wholesale price Chorus charges for broadband over copper wires should be halved, a move the telephone lines company says will cost it about $1 billion by 2020.
Communications Minister Amy Adams says over the last few weeks, external consultants have already carried out an independent analysis of Chorus' financial position across a range of pricing options.
Following the Commerce Comission's ruling, Ms Adams says another consultant will now independently assess the lines company's finances and its ability to finish rolling out ultra fast broadband in light of the revenue cuts.
The consulting firm will also report on a range of alternative options, if needed.
Two major international ratings agencies are considering whether to downgrade Chorus's credit rating as a result of the commission's ruling.
Chorus's biggest investors say while the price cuts are not a massive surprise, many are disappointed at what they perceive to be a lack of support from the Government.
Fund managers say Chorus will need a massive injection of capital and it is likely the dividend, which was one of company's main investment attractions, could be the first to go.
Chorus shares were down nearly 10% at $2.09 just after midday.
