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A review has found that Chorus is at risk of not being able to meet its Government contract to roll out ultra-fast broadband.
The Government has been briefed on the review of the company's finances and whether it can deliver on the project.
Communications Minister Amy Adams says a preliminary conclusion is that copper price changes will have a significant impact on Chorus' financial position and will put broadband contract at risk.
She expects Chorus and Crown Fibre Holdings to discuss specific provisions within the contract, to manage the issue but she expects Chorus to meet a significant part of any shortfall in budget.