Chorus profits affected by tougher competition, effects of Covid-19

Telecommunications line company Chorus posted a decline in profits as its profits were hampered by stiffer competition.

Photo: RNZ

Chorus chief executive Jean Baptiste Rousselot said competing technologies and weak market demand due to the lingering effects of Covid-19 took a toll on his earnings, which he managed to offset by controlling costs.

“Despite the market downturn following Covid-19, we have continued our active wholesaler strategy and are delighted to bring the total number of fiber connections to 871,000. We are on track to meet our target of a million connections next year. “

The company has added 120,000 connections to its fiber optic network and is deploying fiber optic in smaller and more remote communities.

Rousselot said competition from alternative fiber and wireless networks is increasing, but consumers need to be provided with full and fair information about competing technologies and what they offer.

“We are comfortable with the competition, but believe that customers should be provided with all the information on the characteristics of different broadband services and have time to consider their options rather than being informed that their service is changing and that they have to make a quick decision. “

He said the changes being considered by the industry regulator, the Trade Commission, should benefit consumers through better protection and better information.

He was, however, concerned about the Commission’s recent draft policy that would reduce Chorus’ capital and operating expenses, as well as the red tape surrounding offering incentives to retailers to promote fiber.

“We believe that the incentives that we offer equally to all retailers to promote fiber should not go through a lengthy approval process. prevent this. “

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