Release of SOP on the Telco Amendment Bill

Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington
New Zealand

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

24 October 2018


Release of Supplementary Order Paper on the Telco Amendment Bill

The Government has now released its Supplementary Order Paper (SOP) to the
Telecommunications (New Regulatory Framework) Amendment Bill.

“We welcome this step towards a new regulatory framework for New Zealand’s key
communications infrastructure. We look forward to the passage of the Bill and to
starting work on implementation” said Kate McKenzie, Chorus Chief Executive.

The SOP includes a number of detailed changes which appear to be improvements for
certainty. These include:

 Clarification of the Select Committee’s recommendations on the treatment of
Crown Infrastructure Financing;

 Oversight by the Commerce Commission of exemptions from the business line
restrictions from the date of implementation;
 The requirement for the Commission to set specified fibre areas to de-regulate
copper by 1 January 2020;
 The requirement for a 111 code to ensure that vulnerable end users can have
an ability to call 111 in the event of a power failure.

The SOP confirms that the price cap for our anchor service will be set with reference
to price caps agreed with Crown Infrastructure Partners (CIP). We have agreed a
new price cap with CIP for our 100/20 service of $46 from 1 July 2019.

A copy of the SOP can be found here https://www.parliament.nz/en/pb/bills-and-
laws/supplementary-order-papers/document/SOP_80839/telecommunications-new-
regulatory-framework-amendment

Chorus looks forward to the passage of the Bill and to working with the Commerce
Commission to implement the new regulatory framework in a timely manner.


ENDS
For further information:

Nathan Beaumont
Stakeholder Communications Manager
Mobile: 021 243 8412
Email: nathan.beaumont@chorus.co.nz

Brett Jackson
Investor Relations Manager
Mobile: 027 4887808
Email: brett.jackson@chorus.co.nz