Network operator Chorus is both cutting the cost of a fibre network connection and making cost more predictable by inking fixed-price contracts with service providers.
New contracts with Visionstream and Downer have allowed Chorus to reduce its cost guidance for single-dwelling fibre network connections in the current financial year from between NZ$1,300 and NZ$1,500 (excluding layer 2 and for standard installations only) to between NZ$1,150 and NZ$1,350.
The new agreements, under which the companies will provide connections at fixed prices for agreed deployment types, will apply in Auckland, the lower North Island, and the lower South Island.
"With the experience of about 40,000 connections to the fibre network now behind them, daily connection volumes becoming more consistent, and new deployment methods in use, service companies have been able to identify efficiencies earlier than expected," Chorus GM of infrastructure Ed Beattie said.
Visionstream's pricing will apply from December 1, 2014, to February 2016, initially while the contract with Downer is retrospective for the period July 1, 2014, to the end of February 2015.
Chorus said its tender process for non-Auckland areas is continuing. It is expected to be concluded by the end of December and implemented by February 2015.