Crown Fibre Holdings has contracted with four parties to deploy Ultra-Fast Broadband to 75% of New Zealanders. Three Local Fibre Companies or LFCs have been created as a result and the fourth partnership has resulted in a newly formed company called Chorus Limited, which has separated from its former parent, Telecom New Zealand Limited. A list of CFH’s UFB partners and the candidate areas they’ve been contracted to build is shown below:
Northpower Limited (Northpower): 1.6% of UFB total coverage comprising Whangarei, the LFC Northpower Fibre has been created.
Waikato Networks Limited (WNL), owned by WEL Networks Limited and Waipa Networks Limited: 13.7% of UFB total coverage comprising Hamilton (including Cambridge and Te Awamutu), Tauranga, Tokoroa, New Plymouth, Hawera and Wanganui, the LFC Ultrafast Fibre was created. In September 2016 CFH accepted the early repayment of WNL’s funding obligations and thus exited the partnership in UFL. The transaction saw WNL making a payment to CFH in lieu of its remaining financial obligations. Although no longer a shareholder in the LFC, CFH maintains contractual oversight over products, network performance and customer connections until 2019.
Enable Services Limited (ESL) owned by Christchurch City Holdings Limited: 15.3% of UFB total coverage comprising Christchurch (including Rolleston) and Rangiora, the LFC Enable Networks Limited (ENL) was created. In June 2016 it was agreed that ESL would take full ownership of the company. Under the agreement, the Crown investment changed from equity to debt, funding an interest free loan to CCHL, with ESL becoming the sole shareholder in the LFC. For ongoing funding, CFH advances funds through the CCHL debt facility, which CCHL in turn advances to ESL to fund ENL’s acquisition of UFB infrastructure. CFH retains full contractual oversight of deployment and related UFB performance by ESL until 2019.
Chorus Limited, formerly the network arm of Telecom Corporation of New Zealand Limited (Telecom): 69.4% of UFB total coverage comprising 24 Candidate Areas : Auckland, Waiheke Island, Pukekohe, Waiuku, Rotorua, Taupo, Whakatane, Gisborne, Napier-Hastings, Palmerston North, Feilding, Masterton, Kapiti, Levin, Wellington, Nelson, Blenheim, Greymouth, Ashburton, Timaru, Oamaru, Dunedin, Queenstown and Invercargill (being all areas except those covered by ENL, WEL and Northpower).