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Chorus continues growth, reaches 500,000 broadband connections on its network

The company builds and manages an internet network in New Zealand.
It has a nationwide copper network and a growing fibre network

Chorus Ltd (ASX:CNU) (NZE:CNU) has surpassed 500,000 ultra-fast broadband (UFB) connections on its network

Furthermore, the company has signalled it plans to reduce the wholesale price of its premium fibre product.

Chorus is New Zealand’s largest fixed-line communications infrastructure business established in December 2011 following the demerger from Telecom NZ.

Demand for fibre continues to grow

Chorus’s CEO Kate McKenzie said: “The demand for fibre broadband has been rapidly increasing and even more so now as more content moves online and New Zealanders prepare to live stream the Rugby World Cup and other sporting events in 2019.

“And there’s no sign of demand for fibre slowing down.

“As Chorus crosses the country laying fibre, more Kiwis can, and are, taking advantage of faster, more reliable broadband connections.

Streaming and gaming drives fibre demand

“New Zealanders are downloading, streaming high-definition TV and gaming at a huge rate and the likely impact of online TV will continue to be felt in peak network traffic growth.

“As more content becomes available online, new devices are released to watch it on with higher video resolutions such as 4K (and soon 8K).

“What these numbers are overwhelmingly telling us is that as a nation our average data use is growing fast, and it will continue to grow faster in the coming years so being on the best available fibre connection is vital.”

Chorus launches re-setting fixed-rate retail bond offer 

Chorus has also released details today on an offering of up to NZ$300 million 10-year unsecured, unsubordinated, resetting fixed rate bonds maturing on 6 December 2028.

The interest rate for the bonds will be fixed for five years and then re-set for a further period of five years.

Funds will be used for general corporate purposes including further diversifying funding sources and increasing its debt maturity profile.

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