The Chorus Ltd (ASX: CNU) share price could see additional trading volume this morning after the New Zealand telecommunications company reported growth in broadband connections in its Q419 quarterly update.
What did Chorus report to the market?
For the quarter ended 30 June 2019, Chorus saw fibre connections grow to 50% of the company's total broadband connections, in line with the broader Australian trends.
Total broadband connections grew by 5,000 to 1.196 million, led by demand for 1 Gbps, with an increase of 8,000 connections on March 2019 numbers to 58,000 connections.
Management reported strong fibre demand, with 50,000 fibre installations completed during the quarter, while the company managed to keep fibre uptake steady at 53% with 84,000 more customers passed.
Regarding fixed line connections, Chorus saw a decline of 22,000 connections to 1.45 million in Q4 2019 with voice only disconnections increasing as retailers targeted their customers with wireless voice products and services.
Positively, monthly average data usage grew to 265 gigabytes (gb) during the quarter with fibre users now averaging 341 gb per month, up from 329 gb per month in March 2019.
Chorus also reported that Auckland users average 364 gb per month on fibre, with 308 gb per month across copper and fibre networks.
In the pre-market update, the company announced that peak time data usage has begun exceeding 2 terrabytes per second (tbps), 77% higher than was recorded in June 2017.
How has the Chorus share price performed in 2019?
The Chorus share price has climbed 21.7% higher so far this year, despite pricing controversies surrounding unbundled access to the company's ultra-fast broadband (UFB) fibre network.
The likes of Vocus Group Ltd (ASX: VOC) and Vodafone have been pushing for unbundled access to the network, which allows third parties to tap into the existing infrastructure and unlock the future potential for growth in New Zealand.
However, both telcos have slammed Chorus for an unfair commercial pricing model in recent months and negotiations remain tense between the parties.
On 20 June, Chorus released a new pricing model that reduced the cost of fibre to the end consumer by just 15 cents, while a report by Network Strategies announced that it would develop guidance on Chorus' obligations under the New Zealand Telecommunications Act in light of the complaints.
For those looking for other telco exposure, I believe the likes of Telstra Corporation Ltd (ASX: TLS) could continue to rebound following a horror 2018 for investors, particularly given it is now well-placed in the 5G network race with the recent withdrawal of TPG Telecom Ltd (ASX: TPM).
