Chorus, the telecommunications network operator spun out of Telecom last year, will spend as much as $965 million over the next two years in the roll out of its ultra-fast and rural broadband networks.
The company expects to spend between $334 million and $355 million in the seven remaining months of financial year 2012, and between $560 million $610 million in 2013, according to its investor day presentation. Chorus will spend the money on rolling its fibre network and upgrading its ageing copper lines. It spent $410 million on capex in 2011.
The network operator expects to spend between $1.4 billion and $1.6 billion on capital expenditure during the UFB build period, of which the government will pay $929 million, and Chorus will spend between $471 million and $671 million.
"These are massive programmes of investment in New Zealand's network capability," chief financial officer Andrew Carroll said in a statement. "We expect fibre related capex to account for about 80 per cent of gross capex spend this year and next."
Chorus will fund up to $260 million of this year's capex, while government investment will contribute up to $95 million. In 2013, the telecommunications company is set to put up a further $400 million, along with government contributions of up to $210 million.