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New Zealand unveils broadband investment details

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16-09-2009 10:40am

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bealtine

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New Zealand unveils broadband investment details Wednesday 16 September 2009 | 05:59 AM CET

The New Zealand communications ministry has unveiled details of its NZD 1.5 billion broadband investment initiative. The initiative aims to roll out ultra-fast broadband to 75 percent of New Zealanders over ten years, concentrating in the first six years on priority broadband users such as businesses, schools and health services, plus greenfield developments and certain tranches of residential areas. Next month, the government will establish a Crown-owned investment company, Crown Fibre Holdings, to carry out a partner selection process and manage the investment in fibre networks. Crown Fibre Holdings will establish a commercial vehicle, a Local Fibre Company (LFC), with each partner to deploy fibre network infrastructure and provide access to dark fibre products and, optionally, certain active wholesale Layer 2 services. The Telecommunications Users Association (TUANZ) welcomed the government's announcement and highlighted the need for the creation of new online content so that the infrastructure gets maximum early uptake. InternetNZ was also positive and congratulated the communications minister Stephen Joyce. Telecom New Zealand expressed disappointment as it had lodged an alternative proposal which was rejected. Compared with indications from potential partners, Telecom's proposal covered fewer homes and businesses, only provided ducts and not the fibre itself, and did not clearly result in significant additional private sector expenditure above "business and usual" levels, the communications ministry said.

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