Chorus says it can still deliver the ultra-fast broadband and rural broadband initiative effectively despite a $1 billion funding gap by 2020.
The shortfall was confirmed in a final report by Ernst & Young Australia which says a reduction in what the telecommunications company can charge users of its copper broadband network will cost it about $142 million a year.
Chorus chief executive Mark Ratcliffe says it has begun discussions with Crown Fibre Holdings, the government body overseeing the rollout of ultra-fast broadband, and he expects the talks to run into the New Year.
The audit report says the company could reduce the funding gap with cash flow savings and suggests a two year dividend holiday for shareholders.
The Telecommunications Users Association says if that was extended to 2020, it would almost clear the funding gap.