Chorus Limited Achieves 1.15 Million Fibre Connections as Copper Network Phase-Out Nears Completion in Q4 FY26

Fibre Connections Continue Growing Amid Slower Quarterly Gains

At June 30, 2026, Chorus Limited reported 1,147,000 fibre connections, an increase of about 5,000 during Q4 FY26. Although growth continues, this quarterly gain is notably lower than the 13,000 connections added in Q3 FY26, indicating a potential slowdown in new fibre customer acquisition. The total fixed line base, including fibre and copper, declined by 4,000 to 1,191,000, reflecting the ongoing phase-out of copper services as customers switch to fibre broadband.

Demand for higher-speed fibre plans remains strong, with over 80% of customers now subscribing to 500Mbps or faster. The entry-level 100/20Mbps plan grew by 13,000 connections to 148,000, while the 500Mbps plan rose to 61% of all fibre connections, up from 59% last quarter. Premium 1Gbps and above plans held steady at 25%, showing balanced growth across speed tiers rather than concentration solely in top-tier plans.

Network Expansion and Data Cleansing Mark Significant Progress

During Q4 FY26, Chorus extended its fibre network to 6,000 additional addresses, increasing the total addressable footprint to 1,499,000 premises. This modest expansion reflects a shift from rapid rollout to mature network maintenance and incremental growth. Concurrently, Chorus’ data analytics team removed approximately 53,000 non-serviceable and vacant properties from its records, enhancing the accuracy of network uptake metrics and reflecting a mature approach to network management.

Following these adjustments, fibre uptake across Chorus’ network increased by 0.4 percentage points to 75.9%. Uptake in UFB1 areas rose to 77.3%, while UFB2 areas remained steady at 67.5%, highlighting the need for further promotional efforts in phase two rollout regions. Major cities showed stronger adoption rates: Auckland at 78.1%, Wellington at 79.1%, and Dunedin at 79.0%, indicating metropolitan fibre demand outpaces regional uptake.

Record Fibre Data Usage Fueled by Streaming and Video Consumption

Average monthly fibre data usage reached a record 731GB in June 2026, a 9% increase from 671GB in June 2025. This growth reflects rising demand for streaming, cloud services, and remote work applications, alongside spikes from major events like the FIFA World Cup, which added at least 7.8 petabytes to monthly traffic. Approximately 21% of fibre users consumed over 1 terabyte monthly, up from 19% the previous year, driven by multiple high-bandwidth applications such as multi-device streaming, cloud gaming, and video conferencing.

Plan activity remained stable, indicating customers have settled into service tiers matching their usage. The sustained data growth underscores the strategic importance of fibre infrastructure and the revenue potential from higher-tier plans.

Copper Network Phase-Out Nears Completion in Fibre Areas

The copper-to-fibre migration reached a major milestone with fewer than 1,000 copper connections remaining in active fibre areas across Chorus and other local fibre networks. Chorus reported approximately 44,000 copper services at June 2026, after disconnecting 9,000 lines in the quarter. Within Chorus’ fibre footprint, fewer than 750 copper lines remain, with under 300 in other local fibre company areas. This near-complete transition reduces operational complexity and costs associated with maintaining dual networks.

Outside fibre coverage, about 43,000 copper lines remain, down by 6,000 following customer migration to alternatives such as fixed wireless. The copper withdrawal enables Chorus to redirect resources from legacy network upkeep to fibre expansion, customer service, and optimisation, focusing on higher-margin fibre services.

Regional Uptake Shows Varied Urban Market Dynamics

Fibre adoption across New Zealand’s major cities reveals diverse trends. Auckland maintained a stable 78.1% uptake amid ongoing address growth in outer suburbs. Wellington saw the strongest quarterly increase, rising 2 percentage points to 79.1%, likely due to successful customer acquisition or retention efforts. Dunedin’s uptake remained steady at 79.0%, reflecting a mature, saturated market.

These regional differences suggest varying customer acquisition dynamics, with some areas still growing and others nearing saturation. The convergence of uptake rates above 78% in all three cities confirms fibre’s mainstream acceptance in metropolitan New Zealand, with future growth opportunities lying in secondary and regional markets.

Shift in Plan Mix Reflects Growing Demand for Higher Speeds

During Q4 FY26, the share of 500Mbps fibre plans increased from 59% to 61%, while the 100/20Mbps entry-level plan grew by 13,000 connections to 148,000. This indicates continued entry-level market growth alongside significant migration from 100Mbps to 500Mbps plans as customers upgrade to faster speeds. Premium 1Gbps and above plans remained steady at 25%, showing consistent demand for top-tier services.

Stable plan activity suggests customers have found equilibrium between bandwidth needs and pricing. The rise in 500Mbps adoption may be driven by pricing changes, improved service quality, or increased household bandwidth requirements from remote work, education, and multi-user streaming. The consistent 25% penetration of 1Gbps+ plans reflects a dedicated premium segment, including households and small businesses requiring maximum speeds.

Enhanced Data Quality and Clarified Addressable Market

Chorus’ data analytics team completed extensive validation during Q4 FY26, removing about 53,000 non-serviceable or vacant properties from the address base. This cleansing improves the accuracy of fibre uptake reporting by focusing on genuinely serviceable premises, enhancing data integrity and comparability of future metrics.

The restated uptake figures based on the refined address base provide investors with reliable trend information. This data governance improvement supports better forecasting of uptake potential, customer acquisition planning, and capital allocation for network expansion and maintenance.

Regulatory and Market Transition Challenges

Operating under New Zealand’s regulated telecommunications framework, Chorus faces oversight from the Commerce Commission and government policies. As the dominant fibre operator with roughly 75% market share, Chorus encounters regulatory scrutiny on pricing and service terms. The near-complete copper withdrawal simplifies operations but concentrates revenue solely on fibre services, eliminating legacy diversification.

The transition from copper to fibre shifts Chorus from a maintenance-heavy legacy operator to a modern broadband provider, presenting both opportunities and risks. Alternative broadband options like fixed wireless and satellite increase competition outside fibre zones. Sustaining growth depends on high fibre uptake, cost management, and exploring new revenue streams such as hosting and data services leveraging fibre infrastructure.

Outlook: Growth Drivers and Network Monetisation Strategies

With fibre uptake surpassing 75% network-wide and nearing 80% in urban centers, Chorus faces the challenge of growth in a maturing market. Near-term expansion relies on increasing uptake in lagging regions like UFB2 areas at 67.5%, alongside continued data usage growth at 9% annually, which supports revenue through plan upgrades and premium offerings.

Longer-term opportunities include expanding business connectivity, hosting, content delivery, and managed network services using Chorus’ fibre and data centre assets. The copper network phase-out frees resources to focus on higher-margin services. Investors should monitor Chorus’ strategic moves on network monetisation, service diversification, capital allocation, dividends, debt management, and investments in emerging broadband technologies to maintain market relevance beyond traditional fibre-to-the-premises services.