Chorus Limited · NZX:CNU

Chorus — Corporate Update (May 2013)

23 slides from Chorus's corporate update, May 16, 2013

  1. Slide 1: Building New Zealand's fibre future

    Building New Zealand’s fib e ffuture fibre t e Chorus fibre lab visit, 16 May 2013

  2. Slide 2: Disclaimer

    Disclaimer 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 construction of the UFB networ

  3. Slide 3: Deployment

    DEPLOYMENT

  4. Slide 4: UFB rollout progress

    UFB rollout progress > 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 Cumulative premises pass

  5. Slide 5: Auckland UFB area

    > ‘Priority’ premises (businesses, schools and hospitals) to be completed by 2015 Auckland UFB area

  6. Slide 6: Network upgrade map

    www.chorus.co.nz/network-upgrade-map www.chorus.co.nz/network-upgrade-map pg p Add key

  7. Slide 7: Fibre network architecture

    Fibre network architecture 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 customers per Optical Line Ter

  8. Slide 8: Optical Fibre Distribution Frame Fibre Access

    Optical Fibre Distribution Frame Fibre Access Terminal Fibre Flexibility Point Microduct Mi d External Termination Point

  9. Slide 9: Two distribution architectures (current mode)

    Two distribution architectures (current mode) 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 duct, fibre to ~1km. whe

  10. Slide 10: Evolution: Air Blown Fibre Access Terminal

    Evolution: Air Blown Fibre Access Terminal • 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 from >1km to ~440m Cur

  11. Slide 11: UFB capex elements

    UFB capex elements > 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 ▪ traffic ▪ splicing and m

  12. Slide 12: Installation

    INSTALLATION

  13. Slide 13: Connections to premises

    Connections Co ect o s to premises p e ses > 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 / off existing connection

  14. Slide 14: Fibre connection steps from cabinet to home

    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 Network Terminal 4. Fibre

  15. Slide 15: In the home

    IN THE HOME

  16. Slide 16: UFB uptake

    UFB uptake > 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

  17. Slide 17: Technology shifts don't happen overnight

    Technology shifts don’t happen overnight 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 20% 20% 10% Sky TV & c

  18. Slide 18: Top 5 reasons to take up fibre

    Top p 5 reasons to take up p fibre > Residential > Businesses (single site) Source: Colmar Brunton surveys, 2012

  19. Slide 19: Fibre is all about bandwidth

    Fibre is all about 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 exponentially as people do m

  20. Slide 20: TV is prime connection point

    TV is prime connection point > 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

  21. Slide 21: New Chorus fibre plans

    New Chorus fibre plans > 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: 100/10Mbps $45.00 Copper (

  22. Slide 22: VDSL a stepping stone to fibre

    VDSL a stepping stone to fibre > 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 > Fosters bandwidth dema

  23. Slide 23: We're working to bring fibre to your neighbourhood

    We're working to bring u! | to your neighbourhood 1 1 I : : 4 i i I l

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