Global Broadband Futures 13 November 2017

2

3

Premises to be passed by Chorus by Dec 2022

~1,054,000*

Customers able to connect by rollout end

~1.36 million

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

Chorus rollout schedule – indicative only*

UFB1 UFB2 & UFB2+

* UFB1 build ends Dec 2019 and UFB2 build ends Dec 2022. Detailed scheduling for UFB2 & UFB2+ to be completed by end 2017.

FIBRE EXTENDED TO 87% OF POPULATION

> The Government announced extensions to the UFB1 rollout in January and September 2017

▪ fibre to reach another ~12% of population across ~370 towns and rural communities

▪ Chorus has increased its share of these additional UFB phases

Premises passed

4

NEW ZEALAND IS TAKING FIBRE FURTHER…

> From Auckland, New Zealand’s largest city

▪ population: 1.495m (2016)

> To Ahaura, in the South Island’s West Coast

▪ population: 370 (2013)

6

60Mbps avg. connection

speed, doubled in 18

months

Data on the network has

doubled in 18 months

Fibre to the home

connections doubled in 18

months

Growth

7

145Mbps top speed on FTTn, double VDSL2 launch speed

50% more data on FTTn than

fibre network at peak hour

60,000 VDSL migrations in last 3 months

Growth

2

8

MIGRATION CAPACITY

9

MIGRATION

10

VDSL

Fibre

TODAY

11

2012

2017

0

10

20

30

40

50

60

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

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

Ave

rage

Co

nn

ecti

on

Sp

eed

(M

bp

s)

Act

ive

Co

nn

ecti

on

s

ADSL ADSL2+ VDSL2 GPON Average Connection Speed 12

CONNECTION SPEED

> With 53% of broadband connections now on VDSL or fibre, average broadband speed has increased from 33Mbps in Sept 16 to 60Mbps in Oct 17.

Q1 FY18 CONNECTIONS UPDATE

16

CAPACITY

Chorus network traffic by time of day

18

19

Screenshots from Ubiquiti Unifi Application

20

Connection Speed vs. Data Usage

50Mbps25Mbps

100Mbps

1Gbps

ADSL2 VDSL2 FIBRE

200Mbps

Vodafone TVDisk-less Set Top Box and IR Remote

22

23

Connection Speed vs. Data Usage – 90th percentile

50Mbps25Mbps

100Mbps

1Gbps

ADSL2 VDSL2 FIBRE

200Mbps

24

PEAK HOUR – WHEN CONGESTION FREE REALLY COUNTS

> Peak hour data traffic is growing rapidly

▪ 51% increase in Chorus network traffic at ~9pm between June 2016 and June 2017

▪ TrueNet data shows fixed line broadband (fibre/VDSL/ADSL) delivers consistent performance at peak times

▪ wireless (mobile) networks share capacity, as evidenced by significant video buffering

Rural fixed wireless achieving <60% of median best speed at peak time

Chorus network traffic by time of day

Broadband technology comparison by time of day

Source: TrueNet Urban Broadband Report July 2017

Source: TrueNet Urban and Rural Broadband Reports June 2017

Total Links

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17

0 - 10% 5,550 4,831 4,448 4,579 4,424 4,454

10 -20% 2,814 2,852 3,012 3,099 3,546 3,538

20 - 30% 1,260 1,243 1,425 1,396 1,655 1,703

30 - 40% 616 653 676 710 898 892

40 - 50% 378 394 420 381 471 490

50 - 60% 187 185 201 161 205 203

60 - 70% 87 73 87 55 73 73

70 - 80% 26 26 33 13 20 21

80 - 90% 6 4 9 4 5 5

90 - 100% 6 7 5 2 4 2

Congestion Free Modern Network

27Screenshots from askforbetter.co.nz and WiFi Sweetspotsapplication

RSP

Our Vision for Broadband

9FY17 RESULT PRESENTATION