for personal use only - asx · 10/13/2017 · adsl adsl2+ vdsl2 gpon average connection speed 10...
TRANSCRIPT
Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington 6140
New Zealand
Email: [email protected]
STOCK EXCHANGE ANNOUNCEMENT
13 October 2017
Chorus Q1 FY18 Connections Update
Total fixed line connections declined by 20k to 1,582,000 in the three months to 30 September, while total broadband connections declined by 2k to 1,184,000
line loss slowed progressively through Q1 as our Ask for Better campaign made customers more aware of their better broadband options
broadband connections grew in Chorus’ UFB areas, while local fibre companies continued to gain fibre connections in their areas and some retailers promoted their wireless networks more widely
More customers than ever made the switch to better broadband on copper VDSL or fibre
53% of broadband connections now on VDSL or fibre, up from 45% at 30 June
50,000 connections were added to VDSL, our largest increase ever
field force productivity was the highest ever with 40,000 new fibre connections built
fibre uptake across all Chorus UFB areas is now 39%, with Blenheim leading at 47% uptake
Data demand continues to grow as video streaming drives increased broadband usage
1,240 gigabits per second average network throughput at 9pm in September 2017, up from 1,084 Gbps in June 2017
162GB monthly average household data usage in September (128GB average on copper broadband; 251GB on fibre), up from 155GB in June
ENDS
For further information:
Brett Jackson Investor Relations Manager Phone: +64 4 896 4039
Mobile: +64 27 488 7808 Email: [email protected]
For
per
sona
l use
onl
y
Q1 FY18 OVERVIEW
2
> Total fixed line connections declined by 20k to 1,582,000 and total broadband connections declined by 2k to 1,184,000
▪ line loss slowed progressively through Q1 as our Ask for Better campaign made customers more aware of their better broadband options
▪ broadband connections grew in Chorus’ UFB areas, while local fibre companies continued to gain fibre connections in their areas and some retailers promoted their wireless networks more widely
> More customers than ever made the switch to better broadband on copper VDSL or fibre
▪ 53% of broadband connections now on VDSL or fibre, up from 45% at 30 June
▪ 50,000 connections were added to VDSL, our largest increase ever
▪ field force productivity was the highest ever with 40,000 new fibre connections built
▪ fibre uptake across all Chorus UFB areas is now 39%, with Blenheim leading at 47% uptake
> Data demand continues to grow as video streaming drives increased broadband usage
▪ 1,240 gigabits per second average network throughput at 9pm in September 2017, up from 1,084 Gbps in June 2017
▪ 162GB monthly average household data usage in September (128GB average on copper broadband; 251GB on fibre), up from 155GB in June
Q1 FY18 CONNECTIONS UPDATE
For
per
sona
l use
onl
y
Q1 CONNECTION TRENDS
30 Sept 2016
31 Dec 2016
31 March2017
30 June 2017
30 Sept2017
Unbundled copper
105,000 99,000 90,000 82,000 76,000
Baseband copper (no broadband)
354,000 343,000 328,000 313,000 302,000
Fibre broadband (GPON)
203,000 231,000 259,000 292,000 328,000
VDSL (includes naked)
179,000 199,000 224,000 244,000 294,000
Copper ADSL (includes naked)
847,000 784,000 716,000 650,000 562,000
Data services (copper)
10,000 9,000 9,000 8,000 7,000
Fibre premium (P2P)
13,000 13,000 13,000 13,000 13,000
Total fixed line connections
1,711,000 1,678,000 1,639,000 1,602,000 1,582,000
> Total connections reduced by 20,000 to 1,582,000
a reduction of 17,000 copper lines with no broadband (including unbundled connections)
a decrease of 2,000 total broadband connections to 1,184,000
decline of 1,000 data services (copper) connections
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17
Data services (copper) Fibre premium (P2P)Fibre broadband (GPON) VDSLCopper ADSL Unbundled copper (no broadband)Baseband copper (no broadband)
Copper ADSL
VDSL
Fibre (GPON)
Unbundled copper
Baseband copper
For
per
sona
l use
onl
y
KEY CONNECTION TRENDS – Q1 FY18
4
> copper voice only lines reduced by 17k (prior quarter –23k), with just under half of the reduction being UCLL connections presumably migrating to fibre, or other broadband products
> the decline in total broadband connections slowed significantly to -2k (prior quarter -13k) as our Ask for Better advertising and retailer incentives came into effect (campaign started in May)
• 53% of broadband connections are now on VDSL or fibre, up from 45% at 30 June
• VDSL connections grew by 50k in Q1 (prior quarter +20k) as some retailers began to accelerate the migration of their customers to better broadband
• fibre connections grew by 36k in Q1 (prior quarter +33k)
• broadband connections grew in Chorus UFB1 & 2 areas
Q1 FY18 CONNECTIONS UPDATE
INDICATIVE CONNECTIONS BY ZONE AT 30 SEPT(note: zones not yet defined to reflect UFB2+ areas)
Chorus UFB1 & 2 areas
Non-UFB1 & 2 areas
Local Fibre Company UFB 1 & 2 areas
TOTAL
Copper connections – no broadbandBroadband – copper and fibre
241,000 866,000
62,000170,000
75,000 148,000
378,0001,184,000
TOTAL 1,107,000 232,000 223,000 1,562,000*
*Excludes the 20k business fibre/copper data connectionsFor
per
sona
l use
onl
y
PROMOTING BETTER BROADBAND
> Our Ask for better campaign continues to raise awareness of VDSL and fibre availability
▪ more targeted incentives for retailers to migrate ADSL/UCLL connections to better broadband and win back off-net connections
▪ Consumer New Zealand has reported that wireless marketing claims “don’t stack up” relative to fixed line options given speed, data, and congestion limitations.
> Fibre migration trials yielding results
▪ 70% of customers spoken to agreed to connect their homes at the same time as the street rollout in Hokitika.
▪ 40% of customers in an Auckland neighbourhood, whom hadn’t yet connected to fibre, agreed to have their homes connected when approached by Chorus.
> Contact Energy has become the largest electricity retailer to enter the broadband market, offering unlimited plans only and no fixed term contract.
Q1 FY18 CONNECTIONS UPDATE
For
per
sona
l use
onl
y
> 39% uptake with 309,000 connections within UFB deployed footprint (FY17: 35% uptake and 275,000 connections)
73% of mass market fibre plans 100Mbps or higher
total number of 50Mbps connections now reducing
FIBRE UPTAKE & USAGE
6
Total mass market fibre uptake by plan type
% of plans
> 162GB monthly average data usage per connection on our network in Sept 2017
▪ 251GB on fibre
▪ 128GB on copper
GB
Q1 FY18 CONNECTIONS UPDATE
0
50
100
150
200
250
300
Copper Fibre Average0
10
20
30
40
50
60
70
80
90
100
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
50Mbps 100Mbps 200MbpsGigabit Education Business 100Mbps+
Monthly average data usage per connection on our network
GB
For
per
sona
l use
onl
y
7
6% 5% 8%
33%
51%62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017
Share of residential connections by data cap
Unlimited
100GB or more
50GB to 100GB
20GB to 50GB
5GB to 20GB
Under 5GB
UNLIMITED DATA BECOMING THE NORM
Source: Statistics NZ ISP Survey June 2017
> 62% of connections are now estimated to be on unlimited data
Q1 FY18 CONNECTIONS UPDATE
For
per
sona
l use
onl
y
0
5000
10000
15000
20000
25000
Chorus fibre connection activity - all NZ
Connections built and activated Additional connections completed
Orders
> 585,000 premises passed (FY17:581,000) out of
~1,054,000 to be passed by the end of 2022
784,000 customers now able to connect
14 days weighted average lead time for fibre connection (was 22 days in June)
27k work in progress connections (was 32k in June)
customer satisfaction with installation was 7.4 in August (rolling three month average)
8
FIBRE ROLLOUT AND UPTAKE
(net of cancellations and rejections in the month)
Q1 FY18 CONNECTIONS UPDATE
> 40,000 new fibre connections built in Q1, our
highest ever quarter for build
For
per
sona
l use
onl
y
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
9
UFB1 UPTAKE BY REGION
% uptake relative to capable addresses
39% AVERAGE UPTAKE
Q1 FY18 CONNECTIONS UPDATE
ROLLOUT COMPLETED IN THESE AREAS
For
per
sona
l use
onl
y
0
10
20
30
40
50
60
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
May-11 Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17
Ave
rage
Co
nn
ecti
on
Sp
eed
(M
bp
s)
Act
ive
Co
nn
ecti
on
s
ADSL ADSL2+ VDSL2 GPON Average Connection Speed 10
CONNECTION SPEED
> With 53% of broadband connections now on VDSL or fibre, average broadband speed has increased from 33Mbps in Sept 16 to 59Mbps in Sept 17.
Q1 FY18 CONNECTIONS UPDATE
For
per
sona
l use
onl
y
11
-25,000
25,000
75,000
125,000
175,000
225,000
1 3 5 7 9
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
53
55
57
59
61
63
65
67
69
71
73
75
77
79
81
83
85
87
89
91
93
95
97
99
10
1
10
3
10
5
10
7
20
0
Nu
mb
er o
f C
on
nec
tio
ns
Connection Speed (Mbps)
VDSL2 ADSL ADSL2+ GPON
CONNECTION SPEED HISTOGRAM – 30 Sept 2017
~300,000+ ADSL customers could make the switch to
VDSL or Chorus fibre
Q1 FY18 CONNECTIONS UPDATE
For
per
sona
l use
onl
y