Slide 1: Presentation and build update 16 May 2013
Chorus Limited Level 9 Datacom House 68-86 Jervois Quay For personal use only P O Box 632 Wellington New Zealand STOCK EXCHANCE ANNOUNCEMENT Email: company.secretary@chorus.co.nz 16 May 2013 Presentation and build update 16 May 2013 Please find attached presentation. ENDS For further information: Br
Slide 2: Building New Zealand's fibre future
For personal use only Building New Zealand’s fib e ffuture fibre t e Chorus fibre lab visit, 16 May 2013
Slide 3: Disclaimer
Disclaimer For personal use only Forward-Looking Statements > This presentation may contain forward-looking statements regarding future events and the future financial performance of Chorus, including forward looking statements regarding industry trends, strategies, capital expenditure, the construc
Slide 4: Deployment
For personal use only DEPLOYMENT
Slide 5: UFB rollout progress
UFB rollout progress For personal use only > On track for Year 2 cumulative target of 149,000 premises > Chorus build complete for 128,790 premises at 30 April > March most productive month yet with 16,000 premises passed > CFH testing g is on completion p of “area units” with multiple p cabinets Cu
Slide 6: Auckland UFB area
> ‘Priority’ premises (businesses, schools and hospitals) to be completed by 2015 For personal use only Auckland UFB area
Slide 7: Network upgrade map
www.chorus.co.nz/network-upgrade-map For personal use only www.chorus.co.nz/network-upgrade-map pg p Add key
Slide 8: Fibre network architecture
Fibre network architecture For personal use only 1 or 10Gbps Central Office/Exchange handover link to RSP network in this, or another, Central Office 7450 ethernet aggregation switch 10Gbps fibre x 2 8 fibres connected to 32 port splitters = 256 customer capacity capacity. Average about 180 customer
Slide 9: Fibre network components
Optical Fibre Distribution Frame For personal use only Fibre Access Terminal Fibre Flexibility Point Microduct Mi d External Termination Point
Slide 10: Two distribution architectures (current mode)
Two distribution architectures (current mode) For personal use only Where new duct required or Where there is existing duct, but space in existing duct install no space for microduct microduct, install microduct ‘lean’ fixed fibre Comprises 26 tubes enabling air blown > Fibre hauled into existing du
Slide 11: Evolution: Air Blown Fibre Access Terminal
Evolution: Air Blown Fibre Access Terminal For personal use only • Adds a network integration point closer to premises • Enables use of single 26-way microduct, reducing material and civil costs (can re-use re use more existing duct) • Example shows saving of 1.3km in ducting • Reduces provisioning
Slide 12: UFB capex elements
UFB capex elements For personal use only > Civil costs > Network specific > Other ▪ drilling costs ▪ project management ▪ trenching ▪ materials ▪ consigned materials ▪ laterals to ▪ hauling (e g fibre, (e.g. fibre duct) UFB communal boundary ▪ installing network capex ▪ reinstatement components ▪ tr
Slide 13: Installation
For personal use only INSTALLATION
Slide 14: Connections to premises
Connections Co ect o s to premises p e ses For personal use only > RFI underway for provisioning work > Too early to accurately assess costs given volumes > Additional work being done in-home to support RSPs > New Government code for access to multi-unit complexes AERIAL OR UNDERGROUND About 1/3 / o
Slide 15: Fibre connection steps
For personal use only 1. Fibre is blown from the cabinet to the home and 2. The other end of the fibre is connected at the connected at the cabinet. External Termination Point (ETP) on the side of the house 3. A hybrid fibre-copper cable is run from the ETP to the internal wall where the Optical Net
Slide 16: In the home
For personal use only IN THE HOME
Slide 17: UFB uptake
UFB uptake For personal use only > 2,750 connections on UFB network at 30 April > Excludes connections on Chorus’ existing fibre network > Telecom entered residential market end March > Migration of existing Chorus subdivisions to UFB has begun No. off N connections
Slide 18: Technology shifts don't happen overnight
Technology shifts don’t happen overnight For personal use only 100% Technology Adoption in New Zealand (% of Households) 90% 80% 70% Dial up & broadband took Dial‐up Cellphones took Pay TV took over 60% 10 years to reach 50% 15 years 20 years 50% Dial‐up & 40% broadband took 3‐ 30% 5 years to reach
Slide 19: Top reasons to take up fibre
Top p 5 reasons to take up p fibre For personal use only > Residential > Businesses (single site) Source: Colmar Brunton surveys, 2012
Slide 20: Fibre is all about bandwidth
Fibre is all about For personal use only bandwidth > Bandwidth demand is being fuelled by proliferation of internet- enabled devices ▪ our research shows on average three connectable devices per home: smart phones, tablets, e-readers, internet TVs > Globally, online data traffic is increasing expone
Slide 21: TV is prime connection point
TV is prime connection point For personal use only > Wifi modems and consumer devices mean home connection point is moving away from a static desktop > New TVs and decoder boxes ethernet capable > Optical p Network Terminal ((ONT)) also has multicast port for dedicated delivery
Slide 22: New Chorus fibre plans
New Chorus fibre plans For personal use only > Two new fibre plans introduced for RSP testing to complement entry level 30/10 Mbps service ▪ 50/10Mbps service starts at $40.20 ▪ 100/10Mbps service starts at $46.95 ▪ based b d on UFB price i book b k $60.00 $55.00 $50.00 Fibre: 100/50Mbps Fibre: 100/
Slide 23: VDSL a stepping stone to fibre
VDSL a stepping stone to fibre For personal use only > Available to about two-thirds of Bandwidth Chorus lines today availability > Uptake limited to 3,000 3 000 lines with commercial pricing > Re-pricing to $21.46 under UBA Increased Business case to STD with no speed guarantee bandwidth develop >
Slide 24: We're working to bring fibre to your neighbourhood
We're working to bring to your neighbourhood 1 q - I : I 4 I i I l