NZ National's new broom sweeps away Labour's broadband policies

Stuart Corner
Wednesday, 04 February 2009 19:00

IT Industry - Market

New Zealand's new National Party Government has scrapped all the broadband initiatives of the previous Labour government as it prepares to implement is own $NZ1.5b broadband plan.

Communications and information technology minister, Steven Joyce, said that Labour's $NZ340 Broadband Investment Fund (BIF), suspended at the time of the election, would not proceed, and that funding for the Digital Development Council and Forum (DDC) would be withdrawn immediately.

"The BIF was not compatible with the Government's roll out of ultra fast broadband to the premises - it had its own specific set of criteria and was not focussed on our key objective of achieving widespread ultra fast broadband," he claimed.

"Funding for the DDC has been withdrawn because it is our intention to work instead directly through the relevant industry groups. We remain committed to engaging with the groups represented by the DDC but believe that direct interface is a much more effective means of receiving input and advice from these organisations."

Joyce said he would announce the next steps towards the roll out of ultra fast broadband in the near future.

The Labour-led Government's Broadband Investment Fund, released as part of the May 2008 budget, pledged $NZ3490m to support rollout of broadband Internet infrastructure on a contestable, technology-neutral basis. The Fund includes $NZ75m specifically set aside for rural broadband issues. The National's pledged to spend $1.5b over six year to take fibre to 75 percent of New Zealand homes.

The executive director of InternetNZ, Keith Davidson, said that it is clear that there was significant demand in the regions to get ultrafast broadband quickly. "A huge amount of assessment and planning work was undertaken around the country. This huge push for ultra fast broadband should be tapped into within the Government's new plans.

"The Government should consider whether the framework and planning from the BIF could be revised to provide a way to help with broadband rollout outside the 75 percent of the country covered by the $NZ1.5bn pledge."

DDC chair, Fran Wilde, said: "Our priority is now to help the new Government deliver a comprehensive broadband plan, as all our constituent organisations are passionate about the opportunities that ICT and broadband provide for New Zealand.

"We are keen not to lose momentum. For our country to succeed in the digital age, we need a comprehensive set of actions to lift the digital skills of individuals, small businesses and communities and we want to work with the government on that plan."

Wilde said that DDC members were keen to continue their collaboration on whatever scale possible. "This might involve some sort of formal group as a platform for communication and working together, albeit without being able to directly deliver in the same way as the DDC."