Chorus Q2 FY18 Connections Update

Q2 FY18 Connections Update
18 January 2018

Q2 FY18 OVERVIEW
2
>Line trends for the Q2 period to 31 December 2017 were largely consistent with Q1
▪total fixed line connections declined by 23k to 1,559,000 (-20k in Q1)
▪non-broadband copper lines declined by 20k, (-17k in Q1)
▪total broadband connections declined by 3k to 1,181,000 (-2k in Q1)
>Fibre uptake in UFB areas now 42%, up from 39% in September
▪fibre connections grew by 34k, vs 36k in Q1
▪64% of mass market fibre connections on 100Mbps and 20,000 connections on gigabit service
▪VDSL growth slowed to 26k from 50k in Q1, reflecting retailer migration activity
▪58% of broadband connections now on VDSL or fibre, up from 53% at 30 September
>Adoption of video streaming continues to drive growth in data demand
▪new peak of 1,328 gigabits per second network throughput at 9:25pm on 10 December
▪174GB monthly average household data usage in December, up from 162GB in September
Q2 FY18 CONNECTIONS UPDATE

Q2 CONNECTION TRENDS
30 Sept
2016
31 Dec
2016
31 March
2017
30 June
2017
30 Sept
2017
31 Dec
2017
Unbundled
copper
105,00099,00090,00082,00076,00068,000
Baseband
copper
(no broadband)
354,000343,000328,000313,000302,000290,000
Fibre
broadband
(GPON)
203,000231,000259,000292,000328,000362,000
VDSL
(includes
naked)
179,000199,000224,000244,000294,000320,000
Copper
ADSL
(includes
naked)
847,000784,000716,000650,000562,000499,000
Data
services
(copper)
10,0009,0009,0008,0007,0007,000
Fibre
premium
(P2P)
13,00013,00013,00013,00013,00013,000
Total
connections
1,711,0001,678,0001,639,0001,602,0001,582,0001,559,000
>Total connections reduced by 23,000 to1,559,000
a reduction of 20,000copper lines with no broadband (including unbundled connections)
adecrease of 3,000total broadband connections to 1,181,000
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
Data services (copper)Fibre premium (P2P)
Fibre broadband (GPON)VDSL
Copper ADSLUnbundled copper (no broadband)
Baseband copper (no broadband)
Copper ADSL
VDSL
Fibre (GPON)
Unbundled copper
Baseband copper

>42% uptake with 343,000connections within UFB
deployed footprint (Q1: 39% uptake and 309,000
connections)
64% of mass market fibre connections on 100Mbps
less than ¼ of fibre connections on entry level 50Mbps
20,000 connections on gigabit plans
FIBRE UPTAKE & USAGE
4
Total mass market fibre uptake by plan type
% of
plans
>monthly average data usage per connection on our
network grew to 174GBfrom 162GB in Sept 2017
▪250GB on fibre (Sept: 251GB)
▪141GB on copper (Sept:128GB)
GB
Q2 FY18 CONNECTIONS UPDATE
0
50
100
150
200
250
300
CopperFibreAverage
0
10
20
30
40
50
60
70
80
90
100
Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17
50Mbps100Mbps200Mbps
GigabitEducationBusiness 100Mbps+
Monthly average data usage per connection on our network
GB

0
10
20
30
40
50
60
70
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
May-11Nov-11May-12Nov-12May-13Nov-13May-14Nov-14May-15Nov-15May-16Nov-16May-17Nov-17
Average Connection Speed (Mbps)
Active Connections
ADSLADSL2+VDSL2GPONAverage Connection Speed
5
CONNECTION SPEED
>With 58% of broadband connections now on VDSL or fibre, average broadband speed has increased from
59Mbps in Sept 17 to 64Mbpsin Dec 17.
Q2 FY18 CONNECTIONS UPDATE

6
0
50,000
100,000
150,000
200,000
250,000
13579
111315171921232527293133353739414345474951535557596163656769717375777981838587899193959799
101103105107200
Number of Connections
Connection Speed (Mbps)
ADSLADSL2+VDSL2GPON
CONNECTION SPEED HISTOGRAM –31 Dec 2017
~300,000 ADSL customers
could upgrade to VDSL or
Chorus fibre
Q2 FY18 CONNECTIONS UPDATE

---

Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington 6140
New Zealand
Email: company.secretary@chorus.co.nz

MARKET ANNOUNCEMENT
18 January 2018


Chorus Q2 FY18 Connections Update

Line trends for the Q2 period to 31 December 2017 were largely consistent
with Q1
 total fixed line connections declined by 23k to 1,559,000 (-20k in Q1)
 non-broadband copper lines declined by 20k, (-17k in Q1)
 total broadband connections declined by 3k to 1,181,000 (-2k in Q1)

Fibre uptake in UFB areas now 42%, up from 39% in September
 fibre connections grew by 34k, vs 36k in Q1
 64% of mass market fibre connections on 100Mbps and 20,000
connections on gigabit service
 VDSL growth slowed to 26k from 50k in Q1, reflecting retailer migration
activity
 58% of broadband connections now on VDSL or fibre, up from 53% at 30
September

Adoption of video streaming continues to drive growth in data demand
 new peak of 1,328 gigabits per second network throughput at 9:25pm on
10 December
 174GB monthly average household data usage in December, up from
162GB in September

ENDS

For further information:
Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 27 488 7808
Email: brett.jackson@chorus.co.nz