Investors were less enthusiastic. Chorus shares were down 1% to $9 in midday trading following the announcement, while the NZX50 was up 0.1%.

In today’s dollars the revenue cap breaks down as:

Chorus’ revenue increased by 3% to $1.01b in FY24.

At a December 2 investor day — that is, under the draft spending cap of $3.9b, eased slightly today — Chorus told investors it was on track to meet its full-year FY25 guidance of $700-720m Ebitda and an unimputed dividend of 57.5 cents a share.

If the forecast is met, the dividend will be a big jump on FY24′s 35cps.

The Commerce Commission reset the rules for Chorus once the big-spending years of the UFB fibre rollout were behind it.

The company now has a smaller workforce and slimmed-down executive team as it switches its focus from building to operating.

Next year through to 2028 will be the Second Regulatory Period.

During the First Regulatory Period 2022-2024, Chorus’ maximum allowable revenue was capped at between $689m and $786m.

The wild card is a Chorus plan to reanimate the UFB (Ultrafast Broadband) public-private partnership with a new build phase covering rural New Zealand — which it sees as a 10-year, $2.5 billion project that would expand fibre from 87% to 95% of the population, with the costs shared between the company and the Crown.

Chorus said its plan was delivered too late to be included in this year’s Budget, but is lobbying for it next year.

Telecommunications Minister Paul Goldsmith told the recent Tuanz Rural Broadband constraints that the Government is still accessing various options for rural broadband, in the context of fiscal constraints. A DIY broadband boom in rural New Zealand that saw Starlink boost its customer base from 12,000 to 27,000 in a year, earning $78m in the process)

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.