2027 Fibre Input Methodologies Review
We are required to review the Fibre Input Methodologies (IMs) within 7 years of their publication. We commenced our review of them on 27 March 2025, and are required to complete this review by 13 October 2027.
The fibre input methodologies set the key regulatory rules for fibre services. They establish the key rules, processes and requirements that apply to the regulation of fibre services under Part 6 of the Telecommunications Act 2001. They provide certainty to regulated suppliers, access seekers, and end-users about how the regulatory regime will operate.
The Commission is undertaking its first review of the fibre IMs. Our initial view remains that the fibre IMs are generally working well. While considering the breadth of the IMs, our work in the review focuses on the areas of highest value to end-users of fibre services. We are conducting this review in two phases:
- Tranche 1 focused on issues relevant to Chorus preparing and submitting its proposal for a price-quality path reset; and
- Tranche 2 covers matters not addressed in Tranche 1, including fibre-specific cost of capital.
Alongside Tranche 1 we are also reviewing common cost of capital IM elements for fibre and services regulated under Part 4 of the Commerce Act (airports, electricity lines, and gas pipelines) to ensure that our approach is aligned where possible. Final decisions will be published separately at 2027 Input Methodologies Review – Common cost of capital.
Previous documents
On 27 March 2025, two Notices of Intention and an Open letter seeking stakeholder views on the process and initial focus areas of the Fibre IM review were published. This included signalling that where the fibre cost of capital IMs were common regulated suppliers under Part 4 of the Commerce Act we would be considering these IMs, these common areas include our approach to the cost of debt, the risk-free rate of interest for equity and the tax-adjusted market risk premium. Submissions on the Open letter closed on 29 April 2025.
Our Fibre IM Review 2027 (Tranche 1) final decision package was delivered on 25 August 2026. The decision confirms a series of targeted updates to New Zealand's fibre settings. These will ensure fibre networks can continue to grow and deliver reliable, high-quality broadband services for consumers. In the decision we have streamlined the process for assessing capital expenditure proposals through clearer information requirements and more predictable timelines and additional refinements covering areas such as connection costs and insurance will further improve how the regime operates.
The Fibre IM Review 2027: Issues paper (Tranche 2) was published on 4 August 2026. Stakeholders provided their views on the issues paper through submissions and cross submissions.