New Zealand wholesale network operator Chorus has negotiated for the option to bring forward part of the funding it is receiving to build the government's Ultrafast Broadband (UFB) fiber network.
The company has entered into a conditional agreement with the state-owned Crown Fibre Holdings which, if taken up, will allow Chorus to access NZ$178 million ($154 million) in funding after October 2015.
The cash had been budgeted to be spent on the UFB program in FY18 and FY19. At today's financing rates. it would represent between NZ$141 million and NZ$149 million in advance funding, Chorus said in a statement.
“Chorus is already reshaping its business model and has a range of initiatives that will commence in FY15 to address the economic impact of the interim benchmarking pricing that is due to apply from 1 December,” Chorus CFO Andrew Carroll said.
“This facility provides useful additional financial flexibility and liquidity if needed and does not have any ongoing financial cost unless drawn.”
Chorus, which was spun off from Telecom New Zealand in 2011, secured contracts to build around three quarters of the UFB network.
The government aims to cover 75% of the population with the national broadband network by 2019.