12 Dec 2013

Fund manager says Chorus' cashflow crisis could be eased

7:34 pm on 12 December 2013

A fund manager says there are a number of things Crown Fibre Holdings can do to ease Chorus' cashflow crisis sparked by adverse regulatory pricing decisions.

The much lower prices for access to the telephone lines company's copper wires are set to take effect from next December when the Commerce Commission set the wholesale price of access to Chorus' copper network at $23.52 per month and the price of broadband access at $10.92.

The latter is about half what Chorus is currently charging.

The Commerce Commission is reviewing the actual cost of Chorus' copper wire services but that could take more than two years.

Milford Asset Management portfolio manager Mark Warminger says even though the Government has said there's no more money available, Crown Fibre Holdings can change its contract with Chorus.