A major lines company has already put its hand up to take over much of the ultra-fast broadband rollout if Chorus has to pull out.

Vector missed out on the contract in 2011 and says it has approached the Government with renewed interest in the project.

A possible Government intervention to override the Commerce Commission's decision to cut the price of telecommunications company Chorus' copper network was made more unlikely on Thursday when every other political party banded against it.

Vector chief executive Simon Mackenzie said on Friday it originally tendered to build ultra-fast broadband in Auckland, but it could be capable of taking up all of Chorus' contract.

"We have a very keen interest in technology and how that's going to enable the growth for New Zealand. So when we bid, we made it very clear that we would deliver fibre - so long as it stacked up commercially. We remain open to discuss fibre."

Broker Forsyth Barr said Chorus must cut its costs and consider bailing out of the contract altogether, while Devon Funds Management said if the commission's pricing decision stands, the company may break some of its stated targets on debt levels and may cut its dividend.

Photo: CHORUS

Chorus executive director Mark Ratcliffe said on Friday the company is not at risk in the short-term, but the commission's ruling means an eventual 80% drop in profits and that gap needs to be made up.

Mr Ratcliffe told Radio New Zealand's Morning Report programme the company will need to look at ways to make up the funding shortfall between now and the end of the ultra-fast broadband build period in 2020.

"There'll be a mixture of things that we can do, things the Government might be able to assist (with), things that other parts of the industry might be able to assist on.

"We've got some options under the contractual arrangements between us and the Crown about how the network's being built ... there's a whole lot of things to look at. We don't want to leave any thing out, we're really committed to this project."

Mr Ratcliffe said he is happy to discuss with other companies any possible solutions that are put on the table. Chorus shares dropped to a new low of $1.52 on Friday, 26 cents below the closing price on Thursday.

Internet New Zealand chief executive Jordan Carter said he had seen no evidence to prove the commission's decision could cripple Chorus' ability to roll out the UFB project. He said the Government is providing $1.5 billion in capital and the high copper price is extended to to the end of 2014.

Minister looks at Chorus contract

Communications Minister Amy Adams says she was waiting for the outcome of a review of Chorus's finances before deciding on the Government's response. However, she has been looking at the conditions of the contract, and how they could be amended, to ensure the broadband rollout proceeds.

"I've been working frankly on the basis of looking at some contractual potential changes if the report comes back saying that we need to, and until we have that report we simply won't know."

Changes could include, for example, giving Chorus more time to complete the project.

The independent assessment of Chorus' financial position and its capability to deliver on the contract, announced on 7 November, is being done done by Ernst and Young Australia.

Meanwhile, United Future leader Peter Dunne said it is outrageous the Government was even considering over-riding the independence of the commission.

Mr Dunne said the commission was set up to be the independent arbitrator and the Government cannot undercut it when it makes decisions the Government does not like.