Chorus Limited · NZX:CNU
Chorus — Investor Presentation (December 2014)
9 slides from Chorus's investor presentation, Dec 2, 2014
Slide 1: Chorus network modelling
Use build image Chorus network modelling 2 December 2014 DOCUMENT TITLE / V 1.0 / XX DAY 2012 / PAGE 1
Slide 2: Overview
Overview > As requested by the Commerce Commission, Chorus submitted its TSLRIC models into the final pricing review processes for the copper local loop (UCLL / SLU) and broadband access (UBA) services: the models submitted to the Commission are an evolution of the versions explained to investors
Slide 3: The models submitted by Chorus continue to show…
The models submitted by Chorus continue to show… The attractive entry-level UFB 70-80% of the costs are in the fibre pricing ($37.50 per month civils. Key parameters and data increasing to $42.50 by mid will generally be the same for a 2019) does not reflect the true fibre modelling approach. cost o
Slide 4: Recap on Commission preliminary views and Analysys Mason models
Recap on Commission preliminary views and Analysys Mason models Consistent with the Commission’s preliminary views, the Analysys Mason models assume: optimised replacement cost scorched node no re-use of assets Key parameters: updated today for each model (see page 6). Data inputs for paramete
Slide 5: Analysys Mason TSLRIC model outputs
Analysys Mason TSLRIC model outputs > The models produce a view on what it would cost a hypothetical network entrant (HNE) to build a network to deliver the regulated UBA and UCLL and SLU services. We have also run a second scenario with higher optimisation (20%) and an additional downside adjustmen
Slide 6: Model parameter assumptions and comments
Parameter Current network Highly optimised Comment replacement cost replacement cost assumptions assumptions Optimisation 10% 20% Chorus’ hybrid model uses Chorus’ existing asset count as a starting point. In a bottom-up model, an algorithm is used to determine optimised network routes. This adjustm
Slide 7: Build parameters based on detailed network & cost information
Build parameters based on detailed network & cost information > The network build parameters in the models are based on Chorus’ detailed network build information and expertise, and recent cost information. This includes: ensuring regional variability is accounted for by analysing conditions that
Slide 8: Network valuation sense checks
Network valuation sense checks Highly optimised Current network replacement cost replacement cost Chorus FPP analysis Replacement cost for UCLL + UBA assets only Range shows valuation from Highly optimised replacement cost analysis to Current network replacement cost analysis Telecom 2010 op sep
Slide 9: Disclaimer
Disclaimer Forward-Looking Statements > This presentation may contain forward-looking statements regarding future events and the future financial performance of Chorus, including forward looking statements regarding industry trends, regulation and the regulatory environment, strategies, capital expe