Chorus Limited · NZX:CNU
Chorus — Investor Presentation (September 2013)
14 slides from Chorus's investor presentation, September 2013
Slide 1: Benchmarking Broadband
Benchmarking Broadband New Zealand’s path to generating global broadband envy September 2013
Slide 2: New Zealand's broadband story
New Zealand’s broadband story Fast broadband We are a Users are not And while we availability has broadband getting the best love the internet increased growth leader experience we are not using significantly in the OECD available it to be more productive ► Lines capable ► In 2012, we were ► Peak an
Slide 3: NZ can be a leader – it has happened before
NZ can be a leader – it has happened before 2nd in the world for phones per 1st nation in Asia population Pacific with a full First to connection structurally directly into the 2nd country in separate US internet the world to incumbent backbone operationally Ernest Rutherford separate the transmitte
Slide 4: To realise the potential benefits of broadband we need to perform across all areas
To realise the potential benefits of broadband we need to perform across all areas Availability Uptake Experience Usage Ensure quality Getting more New Zealanders Ensure we use the broadband is people on better have the speed and internet as a tool available to as broadband performance to do for con
Slide 5: Chorus believes we can be a top 10 market in these areas
Chorus believes we can be a top 10 market in these areas Availability Uptake Experience Usage Top 10 market Top 10 market Top 10 for user Top 10 country for for fibre-to-the- for broadband experience internet economic home coverage penetration impact Productivity, innovation, business use Top 10 P6
Slide 6: How New Zealand measures up against the world
How New Zealand measures up against the world P7 Benchmarking Broadband – New Zealand’s path to generating global broadband envy
Slide 7: Fibre to the home target of 75% moves us into the leadership quadrant for coverage
Fibre to the home target of 75% moves us into the leadership quadrant for coverage Portugal Portugal Target UK Netherlands South Korea France Singapore 100% - Germany Japan target Spain Sweden Denmark Japan 95% - Europe Hong Australia US Kong Hungary NZ 2020 90% - Standard Fixed Broadband NZ today 8
Slide 8: We are maintaining our lead on the OECD average for broadband uptake
We are maintaining our lead on the OECD average for broadband uptake Wired Broadband Penetration Rates 35 December 2010: Broadband Connections per 100 population UFB March 2008: 30 officially New Zealand first launch launched of local loop unbundling 25 May 2006: OECD Government announces separation
Slide 9: Our broadband experience lags the world and improvement is slow
Our broadband experience lags the world and improvement is slow 50 - Average Download (Mbps) Hong Kong 45 - 40 - 35 - Sweden Netherlands Singapore South Korea Ookla (Speedtest.net) 30 - Japan Experience Switzerland Denmark 25 - Portugal United Kingdom 20 - Germany United States Canada 15 - Australia
Slide 10: The prize at stake
The prize at stake $1,000 Business $800 $600 Agriculture $400 Healthcare Education $200 $0 Y1 Y3 Y5 Y7 Y9 Y11 Y13 Y15 Y17 Y19 $32.8 bn Source: Alcatel Lucent ‘Building the Benefits of Broadband’ P11 Benchmarking Broadband – New Zealand’s path to generating global broadband envy
Slide 11: The prize at stake (cont.)
The prize at stake (cont.) Sector Business Agriculture Education Healthcare Potential savings $14.2bn $9.1bn $3.6bn $5.9bn P12 Benchmarking Broadband – New Zealand’s path to generating global broadband envy
Slide 12: What will success look like for New Zealand?
What will success look like for New Zealand? 1 2 3 4 Fibre demand NZ creates global Better broadband NZ experiences explodes: at broadband means better economic least a third of envy as a centre education, health and export users in UFB of excellence for and rural results; growth based areas on fibr
Slide 13: Our broadband benchmarks - today
Our broadband benchmarks - today Area Measure Rank Availability VDSL: 51% 7th of 33 (households passed) Point Topic FTTH: 8% 23rd of 37 iDate Uptake Broadband: 28.6 16th of 34 (per 100 population) Growth: 8.1% 3rd of 34 OECD FTTH: 0.2 28th of 34 Growth: 123% 16th of 34 OECD Experience Average Down-l
Slide 14: Why broadband is vital
Why broadband is vital NZ needs We face Technology Chorus a new, growing social can transform believes NZ can sustainable challenges our future create global roadmap broadband for growth envy ► Exports are just 30% ► Ageing population ► Connecting the world ► Our fibre to the home of the wealth we t