Chorus intervention will save public $250m over four years, ComCom says

A revenue cap imposed on Chorus will save New Zealand consumers tens of millions of dollars a year, the Commerce Commission says.

The decision would impact the prices consumers pay for fibre.

The commission said in a draft decision it would set Chorus’ maximum allowable revenue at $3.3 billion from the start of next year to the end of 2028.

Chorus, which provides services including installation of ultra-fast broadband, says it will review the Commission’s draft decision. Photo / Chorus

The regulator said these changes could save consumers more than $250 million over the four-year duration.

“We are keenly aware of the cost-of-living pressure faced by Kiwi consumers and propose [several] mechanisms that will slow the rate of price increases for fibre services over the next regulatory period,” said Tristan Gilbertson, Telecommunications Commissioner.

“In addition to the proposed revenue cap, the commission is also consulting on the quality standards Chorus must meet,” the regulator said in a statement today.

The decision related to the price-quality path for Chorus’ second regulatory period for fibre.

The draft decision set out annual revenues in the range of $908m to $1.018b.

Chorus chief corporate and regulatory officer Julian Kersey said Chorus would review the commission’s draft decision.

“However, the draft decision is based on the draft expenditure allowances decision released in April 2024 and doesn’t reflect additional information provided to the commission by Chorus,” Chorus said in an NZX announcement.

Final expenditure allowances were expected to be determined next month, and those would be reflected in the final price-quality determination due in this year’s fourth quarter.