Q3 FY18 Connections Update 13 April 2018
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- Frederica Moody
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1 Q3 FY18 Connections Update 13 April 218
2 Q3 FY18 OVERVIEW > The Q3 period to 31 March 218 was characterised by a continued slowdown in line loss, with strong broadband demand in Chorus UFB zones total fixed line connections declined by 16k to 1,543, (-23k in Q2), with most of the reduction in other fibre company zones as expected non-broadband copper lines declined by 17k, (-2k in Q2) total broadband connections grew by 3k to 1,184, (-3k in Q2) broadband connections grew by 11k within Chorus UFB zones > Fibre uptake in UFB areas now 43% strongest ever quarter for fibre demand with 67k orders 67% of mass market fibre connections on 1Mbps 25% increase in 1Gbps connections to 25, continued increase, albeit off a low base, of off-net win-backs where fibre now available > Peak time data demand continues to surge new peak record of 1,599 gigabits per second network throughput on 4 April GB monthly average household data usage in March 218, up from 174GB in December 2
3 Q3 CONNECTION TRENDS > Total connections reduced by 16, to 1,543, a reduction of 17, copper lines with no broadband (including unbundled connections) an increase of 3, total broadband connections to 1,184, fibre premium connections declined as customers move to lower cost/grade inputs 31 March June Sept Dec March 218 Unbundled copper 9, 82, 76, 68, 62, Baseband copper (no broadband) Fibre broadband (GPON) VDSL (includes naked) Copper ADSL (includes naked) Data services (copper) Fibre premium (P2P) 328, 313, 32, 29, 279, 259, 292, 328, 362, 394, 224, 244, 294, 32, 325, 716, 65, 562, 499, 465, 9, 8, 7, 7, 6, 13, 13, 13, 13, 12, Baseband copper Unbundled copper Copper ADSL VDSL Fibre (GPON) Total connections 1,639, 1,62, 1,582, 1,559, 1,543, Data services (copper) Fibre broadband (GPON) Copper ADSL Baseband copper (no broadband) Fibre premium (P2P) VDSL Unbundled copper (no broadband)
4 CONNECTIONS BY ZONE > The table below shows indicative connection totals by zone as at 31 March broadband connections within the Chorus UFB zone increased connections in Rural (non-ufb) zone were stable the pace of connection loss in the LFC UFB zone has slowed compared to the same time last year Copper connections: no broadband Broadband: copper and fibre Chorus UFB zone* Q3 change Rural (non-ufb) zone Q3 change Local Fibre Company UFB zone* Q3 change TOTAL 219, -13k 54, -1k 68, -3k 341, 95, +11k 143, - 136, -8k 1,184, TOTAL 1,124, 197, 24, 1,525,** * Includes planned UFB1, 2 and 2+ coverage **Excludes the 18k business fibre/copper data connections 4
5 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 FIBRE UPTAKE & USAGE > 32, mass market fibre connections added in Q3 25, connections now on gigabit plans (Q2: 2,) 67% of mass market fibre connections on 1Mbps 1/2Mbps pricing increases to $45 monthly from 1 July > Monthly average data usage per connection on our network grew to 185GB from 174GB in Dec GB on fibre (Dec: 25GB) 144GB on copper (Dec:141GB) % of plans Total mass market fibre uptake by plan type Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 5Mbps 1Mbps 2Mbps Gigabit Education Business 1Mbps+ Monthly average data usage per connection on our network 3 25 GB GB Copper Fibre Average 5
6 ONLINE VIEWING DRIVING RECORD PEAKS > New peak traffic record of 1,599 Gbps on 4 th April up 2% since Q2 record peak of 1,328Gbps on 1 December increase equivalent to an extra 5, HD TV streams Network throughput (Gbps) Record traffic peaks on Chorus network TVNZ reports 1.33m live streams (~3m viewing minutes) during first 7 days of Commonwealth Games Dec Jan-18 1-Feb Mar-18 4-Apr-18 6
7 FIBRE FOCUS > Record quarter for fibre demand with 67k orders 32k fibre installations completed weighted average lead times reduced from 14 to 8 days field crews increased from 7 to 72 work in progress increased from 25k to 32k > Migration activity fuelling order growth 3+ concurrent campaigns (RSP and Chorus led) Hokitika build + ONT trial extended to Thames: about 2/3 of customers spoken to so far agree to ONT installation strong response to trial Wellington off-net campaign No. of connections 1,4, 1,2, 1,, 8, 6, 4, 2, UFB rollout and uptake Uptake 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % > 43% UFB uptake at 31 March (Q2: 42%) 373, connections 863, customers able to connect 643, premises passed scheduled to pass 45, more premises in Q4 UFB connections UFB available addresses Planned footprint % Uptake Premises to pass by Dec 222 ~1,54,* Customers able to connect ~1.36 million *Includes estimated 43k greenfields premises for UFB1 7
8 UFB UPTAKE BY AREA 5.% 45.% 4.% 35.% ROLLOUT COMPLETED IN THESE AREAS Note: % uptake can reduce in some areas as the fibre rollout passes more addresses in a period 43% AVERAGE UPTAKE % uptake relative to capable addresses 3.% 25.% 2.% 15.% 1.% 5.%.% Jun-17 Sep-17 Dec-17 Mar-18 8
9 Active Connections Average Connection Speed (Mbps) CONNECTION SPEED > 61% of broadband connections now on VDSL or fibre > Average broadband speed has increased from 64Mbps in Dec 17 to 72Mbps in March 18. 1,4, 1,2, Connection Speed 8 7 1,, 6 8, 6, 4, 2, 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 Nov-17 ADSL ADSL2+ VDSL2 GPON Average Connection Speed 9
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