NZ Gov't fleshes out FTTH plans

Stuart Corner
Wednesday, 16 September 2009 06:04

IT Industry - Strategy

"TUANZ is especially pleased with the approach to balancing the need of investors for a predictable regulatory regime, with the desire of users for a competitive market with real choice and value. By dealing up front with competition issues related to fibre investment, and incorporating them in the design of the commercial structures, it should be possible to minimise the regulatory intervention that has been an unfortunate but necessary feature of the copper and mobile markets."

He added: "One related aspect that we want the government to give more attention to is the creation of new on-line content so that the infrastructure gets maximum early uptake. The real benefits of this investment will come through in health, education, business productivity, telework, government services, security, environmental management and a host of other components of people's economic and social well-being. We need to get all these sectors working together so that the maximum benefit is derived as quickly as possible after the connectivity comes on stream."

In light of the equally momentous announcements in Australia, Newman said: "There will be important lessons to be learned from Australia, both in the infrastructure deployment and the usage. It is interesting that New Zealand and Australia are on parallel tracks and are ahead of many western countries, a fact that reflects the added value of connectivity to countries that suffer inherently from geographic isolation."

In a brief statement InternetNZ said it was "delighted" with the announcement. Spokesperson Jordan Carter said "This is a world-leading programme that can be expected to deliver the infrastructure New Zealand needs. Steven Joyce and the Government have put in place a framework that over time can deliver a widespread fibre rollout across urban New Zealand. Congratulations are in order."

Telecom NZ and the major NZ telcos had not made comments at the time of writing. However they have already made their opposition to the plan abundantly clear. In a rare show of unity Telecom NZ, TelstraClear and Vodafone in April released the results of a jointly commissioned study that was highly critical of the plan.

Further details on the government's proposal are set out in an overview document available here. Details and criteria for partner selection will be made available later as part of the partner selection process.