Adams calls for independent assessment of Chorus

Amy Adams has announced:

Communications and Information Technology Minister has today instructed her officials to commission an independent assessment of Chorus’ financial position and its capability to deliver on its contractual commitments under the Ultra-Fast Broadband and Rural Broadband Initiatives.

Ms Adams has written to Chorus informing the company of her decision.

“In recent weeks, I have had the Ministry of Business Innovation and Employment (MBIE) work with external consultants to carry out an independent analysis of Chorus’ financial position across a range of pricing options, based on publicly-available information.

“To complement this work, I have decided to seek an independent assessment at arm’s length from the Government.

“In order to properly assess the range of options before the Government, I have directed MBIE to work with Crown Fibre Holdings to commission independent advice to the Government of Chorus’ financial position and capability to deliver on its contractual obligations with the Government.”

The review would assess the impact of the Commerce Commission’s decisions on both the Unbundled Copper Local Loop and the Unbundled Bitstream Access prices on Chorus’ ability to deliver on its contractual commitments under the Ultra-Fast Broadband and Rural Broadband Initiatives.

As part of the review, the consulting firm would be asked to assess the scope for Chorus to manage the impact within the constraints of the reduced revenue, and if required, a range of alternative options.

At the end of the review, the report would be provided directly to Ms Adams, and a copy of the report released publicly.

I think this is a very sensible thing to do, and look forward to seeing who is selected to do the review, and their eventual report. That information will allow us to have a more informed debate on whether intervention with the Commerce Commission’s decision is necessary and/or desirable.