Chorus shares plumbed new depths on Friday after it became clear the Government doesn't have the numbers to pass legislation over-ruling the Commerce Commission.
The commission has ruled the price Chorus can charge for broadband over copper wires must almost halve from December next year.
Chorus shares fell as low as $1.47 before recovering a little to close at $1.52.5, down 26 cents for the day and from $2.65 at the end of October.
Analyst Arie Dekker of Craigs Investment Partners says Chorus now has to assume the Government won't over-rule the Commerce Commission and do what it can to protect its financial position.
"Given the uncertainty facing the business it is going to be quite difficult to raise equity for investors - its not particularly compelling when they don't have clarity on copper pricing or where fibre pricing ultimately ends up post 2020."
Mr Dekker says Chorus is receiving a lot of funding from the Government through the UFB roll out, and there may be changes in the way that is structured that would help.
"Certainly if they were to cut the dividend completely, that might buy them some time."
