Glossary

A

ADSL

Asymmetric Digital Subscriber Line. This is a technology for delivering a high bit rate link to customers over ordinary copper.

Asynchronous Transmission

A serial data transmission method in which each character is transmitted as a self contained unit. Transmission is controlled by start and stop elements at the beginning and end of each character. Also called Star-Stop transmission.

ATM

Asynchronous Transfer Mode - A transfer mode in which the information is organised into cells. It is asynchronous in the sense that the recurrence of cells containing information from an individual user is not necessarily periodic.

B

Bandwidth

The range of frequencies assigned to a channel or system. The difference expressed in Hertz between the highest and lowest frequencies of a band.

Baseband

means the Chorus baseband product. The baseband product is a technology neutral voice input service that will be bundled with a broadband product but can be provided on a standalone basis should a customer not require a broadband connection

Bit

A contraction of the term Binary Digit. A bit can either be 0 or 1, OFF/On and is the smallest possible unit of information making up a character or word in digital code.

Bitstream

means a stream of data in binary form

BPS

Bits per second - A measure of information transfer. The number of bits passing a point per second.

Broadband

High speed internet connection

Bursty applications

The length of the gaps between data transmissions exceed the length of the transmissions themselves. These include credit card verification, hotel and airline reservation applications and banking transactions.

C

CFH

Crown Fibre Holdings Limited was established to manage the Government’s $1.5 billion investment in Ultra-Fast Broadband infrastructure.

CFH Debt Security

means a debt security issued or, as the context may require, to be issued by New Chorus to CFH pursuant to the Subscription Agreement and on the terms set out in schedule 2 of the Subscription Agreement 

CFH Equity Security

means an equity security issued or, as the context may require, to be issued by New Chorus to CFH pursuant to the Subscription Agreement and on the terms set out in schedule 3 of the Subscription Agreement

CFH Security

means a CFH Debt Security and/or CFH Equity Security, as the context may require

CFH Warrant

means a warrant issued or, as the context may require, to be issued by New Chorus to CFH pursuant to the Subscription Agreement and on the terms set out in schedule 4 of the Subscription Agreement

Chorus Services Agreement

means the standard services agreement general terms of New Chorus (based on the form of such agreement used by Chorus prior to the Demerger), together with any particular terms relating to a specific service, as approved by New Chorus from time to time

Chorus Wholesale Services Agreement

means the standard wholesale services agreement general terms of New Chorus (based on the form of such agreement used by Wholesale prior to the Demerger), together with any particular terms relating to a specific service, as approved by New Chorus from time to time

Commerce Act

means the Commerce Act 1986 of New Zealand

Commerce Commission

means the Commerce Commission of New Zealand

Companies Act

means the Companies Act 1993 of New Zealand

Copper Undertakings

means undertakings pursuant to the Telecommunications Amendment Act, relating to the provision of copper products within the New Zealand telecommunications market

Corporations Act

means the Corporations Act 2001 (Cth) of Australia

Coverage Area

The geographic area serviced by a given Handover Point, assuming no backhaul, and will contain numerous DSLAMs.

CPI

means the Consumer Price Index (all groups) published by Statistics New Zealand from time to time, or the percentage increase or decrease in that index over the relevant period, as the context requires

Crown

means Her Majesty the Queen acting in right of New Zealand

D

Deed of Operational and Governance Undertakings

the deed to be entered into following the issuance of the Final Court Orders and containing certain operational and governance undertakings to be given by Chorus in favour of the Crown in the form agreed between Telecom and CFH

Demerged Business

the business conducted by the Chorus business unit prior to the Demerger Date, and certain aspects of the business currently conducted by the Wholesale business unit prior to the Demerger Date (including: fixed line telecommunications infrastructure, fixed access and aggregation services in New Zealand) and certain aspects of the New Zealand Government's ultra-fast broadband initiative; and certain aspects of the business conducted by the Technology and Shared Services, and Corporate business units prior to the Demerger Date

Demerger

the proposed demerger of New Chorus from Telecom to be implemented through the Scheme on the Demerger Date

Demerger Date

30 November 2011 when Telecom and Chorus became separate entities

Demerger Distributio

the entitlement of each Telecom Shareholder to the distribution of an amount equal to the volume weighted average price of one New Chorus Share as traded on the NZSX over the last five trading days prior to the Demerger Date, for each five Telecom Shares held by that Telecom Shareholder as at the Record Date (subject to rounding in accordance with the Separation Arrangement Plan), which Telecom will apply to pay for the New Chorus Shares to be transferred pursuant to the Separation Arrangement Plan to Eligible Shareholders and the Sale Agent

DSL

Digital Subscriber Line and is a family of communications technologies allowing high-speed data over existing copper-based access networks in the local loop. Globally, DSL copper-based access networks are being replaced by ultra-fast fibre-based access networks in the form of fibre-to-the-node (FTTN) and fibre-to-the-premise (FTTP)

DSLAM

Digital Subscriber Line Access Multiplexer

E

EBIT

earnings before interest and tax expense

EBITDA

earnings before interest, tax expense, depreciation and amortisation

F

Fibre Undertakings

undertakings pursuant to the Telecommunications Amendment Act, relating to the provision of fibre products within the New Zealand telecommunications market 

FTTN

fibre-to-the-node and is a local access network architecture with fibre from the local exchange to the roadside cabinet and a copper connection from the roadside cabinet to the end-user premise.  Typically the FTTN local access network architecture allows for higher data speeds and capacity than if the end-user premise is served with copper from the local exchange, but lower speeds and capacity than a FTTP local access network

FTTP

fibre-to-the-premise and is an all-fibre local access network architecture with fibre from the local exchange to the end-user premise.  Typically the FTTP local access network architecture allows for the highest data speeds and capacity which enables high bandwidth end-user services such as IPTV.  The objective of the New Zealand Government led UFB Initiative is to deploy ultra-fast broadband via a FTTP network to 75% of New Zealanders by 2019

FY

means financial year ending 30 June

I

ICT

information and communication technologies

IP

internet protocol, a communications protocol suite used for carrying data on the internet. Within telecommunications networks globally traditional analogue networks based on copper cables are being replaced with IP based networks based on fibre

ISDN

the integrated services digital network and is a switched digital transmission network that can carry a range of digitised voice, data and images. Basic rate access offers 128 Kbit/s capacity on two channels and primary rate access offers 2 Mbit/s capacity on 30 channels

L

Layer 1

Layer 1 within the OSI model is classified as the physical layer and within a telecommunications fixed access network this can be considered to comprise copper and fibre cables and co-location space inside exchanges or cabinets

Layer 2

Layer 2 within the OSI model is classified as the data link layer and provides the functional and procedural means to transfer data between network entities.  Within the telecommunications fixed access network this can be considered to comprise the Bitstream equipment and services which transmit basic data from one point in the network to another over the Layer 1 physical assets

LFC

local fibre company, being an entity in which CFH, the Government and a partner will hold shares, and through which the investment of CFH and the partner in relation to the UFB Initiative will be effected

LTE

long term evolution, a fourth-generation fully packet based mobile network technology that is capable of providing more efficient and faster data transfer than 3G

N

NBN

the fibre-to-the-premise (FTTP) network being constructed in Australia by NBN Co Limited 

O

Operational Separation Undertakings

means the Telecom operational separation undertakings in the form provided to the Minister of Communications and Information Technology on 25 March 2008 and approved by the Minister pursuant to Part 2A of the Telecommunications Act, as such undertakings may be amended or replaced from time to time

OTC market

the over-the-counter market in the United States

P

Premises

a single building or structure located on a defined geographical site (such as may be evidenced by a certificate of title), which has a unique physical address recognised by NZ Post, and is occupied by or could readily be occupied by a potential end-user

PSTN

the Public Switched Telephone Network, a nationwide dial-up telephone network used, or intended for use, in whole or in part, by the public for the purposes of providing telecommunications between telephone devices

R

Rural Broadband Initiative

means the Government led initiative to deliver access to faster broadband to rural areas of New Zealand which Telecom and Vodafone have each agreed to rollout in partnership with the Government, as described in section 5.5.3

S

Share Registrar

Computershare Investor Services Limited (New Zealand)

SLES

sub loop extension service. This service allows retail service providers to connect a sub loop UCLL line from a roadside cabinet to the local exchange to enable them to continue to offer phone and/or broadband service from the exchange in areas that have been cabinetised

SLU

sub loop unbundling and enables retail service providers to gain direct access to New Chorus’ roadside cabinets, enabling them to house their own telecommunications network equipment within the roadside cabinet and connecting to the final copper connection to the end-user Premise.  SLU is part of the regulated copper product suite that New Chorus will offer to its customers

SME

small and medium-sized enterprise

T

Telecommunications Act

means the Telecommunications Act 2001 of New Zealand

Telecommunications Amendment Act

means the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 of New Zealand

TSO

means the Telecommunications Service Obligation recorded in the TSO Deed

TSO Deed

means the Telecommunications Service Obligation Deed for Local Residential Telephone Service between the Crown and TNZL, dated December 2001

U

UBA

unbundled bitstream access and allows retail service providers direct access to the high speed copper Bitstream access links, enabling them to use New Chorus' equipment in the local access network to deliver high speed broadband services, rather than having to invest in deploying their own equipment.  Within New Zealand UBA services are a regulated set of services and products that will be offered by New Chorus

UBA Backhaul

unbundled bitstream access (UBA) backhaul and allows retail service providers to access the regional backhaul network to enable them to build a nationwide presence incrementally, without having to invest in their own dedicated backhaul.  Within New Zealand UBA backhaul services are a regulated set of services and products that will be offered by New Chorus

UCLFS

unbundled copper low frequency service

UCLL

unbundled copper local loop and is a service that enables retail service providers access to, and interconnection with, the copper local access network, including any relevant end-user line.  With the UCLL access service the retail service provider is able to use its own equipment without the need to replicate the copper local loop from the local exchange to the end-users premise

UCLL Backhaul

unbundled copper local loop backhaul and is a service that enables retail service providers access and interconnection with the UCLL services mentioned above across the wider local access network, between multiple exchanges.  UCLL backhaul services do this by giving retail service providers access to transmission capacity in the access network by enabling the aggregation of their traffic between the local exchange to the handover point within the retail service providers own network

UCLL Co-location

unbundled copper local loop co-location and is a service that allows retail service providers to rent space in or on premises owned by the local access network owner (mainly in exchanges).  This enables retail service providers to house their telecommunications and, in some cases, IT equipment closer to the end-user in exchanges 

UFB

ultra-fast broadband

UFB Agreements

the contracts agreed between Chorus and CFH relating to Telecom's participation in the UFB Initiative and falling under the definition of "Transaction Documents" in the Interim Period Agreement including:

• the Interim Period Agreement;
• the Network Infrastructure Project Agreement;
• the Subscription Agreement;
• the Deed of Operational and Governance Undertakings; and

the New Products Commitment Agreement 

UFB Initiative

the Government led initiative to aim to enable 75% of New Zealanders to be able to access ultra-fast broadband by 31 December 2019 as set out in section 3.3, and of which New Chorus will become a cornerstone participant if the Demerger proceeds

UFB Network

the fibre-to-the-premise (FTTP) network constructed pursuant to the UFB Initiative

V

VDSL

very high bit rate digital subscriber line and is a high speed variant of the DSL family of products

VDSL2

very high bit rate digital subscriber line and is the highest speed variant of the DSL family of products

W

WSA

the reference offer approved by CFH (and any subsequent amendments) as the terms on which New Chorus will provide UFB services in UFB candidate areas.