Commerce Commission's first Fibre Input Methodologies review adds an investment test that could reshape Chorus wholesale pricing—and your bill.
What's Being Reviewed
In March 2026, the Commerce Commission kicked off a major review of the Fibre Input Methodologies (IMs) — the regulatory rules that determine how much Chorus and other fibre companies (Enable, Tuatahi First Fibre, Northpower) can charge for wholesale fibre access.
This might sound dry, but it directly affects what you pay for broadband. The wholesale price your ISP pays Chorus for fibre access is the single largest component of your monthly bill. If the IMs change, wholesale prices shift — and retail prices follow.
The review covers the building block methodologies: how fibre companies value their assets, what return on investment they're allowed to earn, and how operating costs are assessed. These rules were first set in 2020 when the new fibre regulatory regime kicked in, and this is the first major review.
What the Commerce Commission Is Proposing
The ComCom has flagged several areas for potential change:
Clearer investment test: The current rules for approving major capital expenditure (new network builds, upgrades) are complex and sometimes unclear. The proposed changes would create a more streamlined process for Chorus to get investment approved, potentially speeding up network improvements.
Capex assessment framework: How Chorus's capital spending is assessed and allowed into the regulated asset base. Simpler rules here could encourage more network investment — upgrades to hyperfibre, expansion to underserved areas, resilience improvements.
Cost allocation methodology: How shared costs between fibre and other Chorus services are split. Getting this right ensures fibre consumers aren't subsidising other parts of the business.
Treatment of crown financing: Chorus received government funding during the UFB rollout. How this is treated in the regulatory framework affects the allowed revenue calculations.
What Could Change for Consumers
The review could lead to several outcomes that affect everyday broadband users:
More network investment: If the investment test is streamlined, Chorus and other fibre companies may invest more aggressively in network upgrades — faster speeds, better resilience, broader coverage. This benefits everyone long-term.
Wholesale price adjustments: The IMs determine the maximum wholesale prices. Changes could push prices up (if Chorus argues it needs more revenue for investment) or down (if the ComCom tightens efficiency expectations). The direction isn't clear yet.
Potential deregulation of some services: The ComCom is considering whether certain fibre services — particularly premium products like Hyperfibre — should be deregulated. The argument is that these are competitive, discretionary products that don't need the same regulatory protection as basic broadband. If deregulated, Chorus could set prices freely.
The balance the ComCom is trying to strike: protect consumers from monopoly pricing while ensuring Chorus has enough incentive and revenue to keep investing in the network. Get it wrong in either direction and consumers lose — through higher prices or underinvestment.
Timeline and Process
The review follows a structured process:
March 2026: Draft decisions and consultation papers published. Stakeholders (Chorus, ISPs, consumer groups, the public) can submit feedback.
April–June 2026: Consultation period. Cross-submissions (responding to other parties' submissions) follow. The ComCom holds conferences and workshops on key issues.
Q3 2026 (target): Final decisions published. The new IMs take effect, feeding into the next regulatory period's price determinations.
The decisions made in this review will shape NZ broadband pricing and investment for the next 3–5 years at minimum. It's the most significant regulatory event in the fibre sector since the original IMs were set in 2020.
Public submissions are welcome — you don't need to be an industry expert to have your say. The Commerce Commission publishes all submissions on its website.
Why You Should Care
Regulatory reviews are easy to ignore — they're technical, they involve acronyms nobody uses in real life, and the outcomes take years to materialise.
But this review will determine: - Whether your broadband gets cheaper, more expensive, or stays the same over the next regulatory period - How quickly the network is upgraded (more coverage, faster speeds, better resilience) - Whether niche products like Hyperfibre remain regulated or become market-priced - How much of Chorus's investment goes into expanding coverage to underserved areas vs maximising returns in already-served areas
In a country where one company (Chorus) controls the vast majority of the fibre network, regulation is the primary check on pricing power. The IMs are the mechanism that makes this work.
We'll be following the review closely and breaking down the final decisions when they're published. For now, the key takeaway: the rules governing your broadband price are being rewritten this year.
