Telecommunications lines company Chorus has seen a dip in profit with earnings dented by tougher competition.
Photo: RNZ
Chorus chief executive Jean Baptiste Rousselot said competing technologies and softish market demand because of lingering Covid-19 effects hurt its revenue, which it managed to offset through cost control.
"Despite the softer market in the wake of Covid-19, we continued our active wholesaler strategy and were pleased to grow total fibre connections to 871,000. We are well on the way to our target of one million connections next year."
The company added 120,000 connections to its fibre network, and is rolling out fibre to smaller more remote communities.
Rousselot said competition was increasing from alternative fibre and wireless networks, but consumers needed to be given full and fair information about competing technologies and what they offered.
"We're comfortable with competition, but we believe customers should be given all the information about the characteristics of different broadband services and time to consider their options rather than being told their service is changing and they have to make a quick decision."
He said changes being considered by sector regulator the Commerce Commission should benefit consumers through better protection and information.
He was concerned however by the Commission's recent draft policy which would cut Chorus's capital and operating spending, and red tape about offering retailers incentives to promote fibre.
"We feel that the incentives we offer equally to all retailers to promote fibre should not be subject to a drawn-out approval process. Retailers keen to promote fibre need early certainty around these incentives to plan their offerings and their campaigns and further approval processes would hinder this."
