Telecom NZ bid to win NZ's $NZ1.5B "NBN' rollout

Stuart Corner
Friday, 29 January 2010 06:36

Business IT - Networking

Telecom New Zealand will today submit its response to the NZ Government's invitation to participate in providing ultra-fast broadband (UFB) for New Zealand: the equivalent of Australia's National Broadband Network.

The Government plans for the network to serve an initial 25 urban areas within six years and the 33 largest urban areas by population by 2021.

Telecom says it will provide a fully compliant preferred commercial model proposal, and an alternative commercial model proposal focussed on delivering a national network using its fibre-to-the-node (FTTN) programme "as the logical springboard for the Government's vision of fibre-to-the-home (FTTH)."

However, according to CEO, Paul Reynolds, "Telecom is open to discussing other alternative proposals which achieve the Government's objective, avoid unnecessary waste and align the incentives and investment plans of both the Government and Telecom." (All submissions are confidential.)

He added: "Telecom's access network business, Chorus, has many years of experience and a superior engineering skill and knowledge base. The Chorus-led FTTN project is an ongoing example of our decades of experience in building and operating national infrastructure. This project already extends the fibre footprint beyond the business districts of every city to include the majority of small businesses and within two kilometres of most residential homes."

However, to be compliant Telecom will have to create a separate entity with separate majority shareholding. The Government has made it clear that it will only invest money into fibre companies that are not controlled by shareholders who also operate retail telecommunication businesses.

Today, 29 January is the deadline for all proposals to be submitted. No other players have so far given any indication of their submissions.

Reynolds said: "Telecom will submit a powerful proposition that will ensure the fast delivery of a national fibre network with none of the Government's money being wasted through duplicating what is already built. It makes the maximum use of the fibre already in the ground, assures high quality and guaranteed delivery, and the absolute minimum of waste.

"Also, a national approach ensures individual regions benefit from a consistently engineered and interconnected network. Quality and flexibility are at the core of the network we propose to build. The network will last well into the future and be flexible enough to adapt - at minimal cost - to customer demand and new technologies as they emerge.

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