Telecom NZ unveils $NZ1.4 billion broadband plan

Stuart Corner
Sunday, 28 October 2007 14:57

Opinion and Analysis

He said the company would install more ADSL2+ technology, more fibre to the street and create a next generation network capable of supporting a wide range of IP-based services for its wholesale and retail customers.

"A key element of the Undertakings we submitted yesterday is our proposal to accelerate the first phase of an enhanced, next generation fixed network IP footprint to all towns with 500 or more lines, across rural and urban New Zealand...[that] will support the provision of sophisticated offerings, including faster broadband up to 20Mbps, and VoIP services," Reynolds said.

"Over the next five years, we anticipate that total expenditure on our next generation network and fast broadband will amount to some $NZ1.4 billion."

Ernie Newman, CEO of the Telecommunications Users Association of New Zealand, welcomed the move, saying on the TUANZ blog site: "Maybe, at long last, New Zealand's communications infrastructure is on a roll."

Another commentator's remarks o the siteseem germane to the Australian situation. He wrote: "It's good to see progress from the bully boy tactics of refusing to invest if legislated, to a more realistic approach. And good on [communications minister] David Cunliffe on standing his ground, extracting some penalties from them, yet pushing the legislation through."

It' still early days yet to see if the NZ approach delivers better results than Australia's, but it is worth noting that in the UK BT, faced with the prospect of even tougher controls on its market power, opted for operational separation on its own initiative.

If NZ does start to move ahead of Australia in terms of broadband service availability speed and price, it will give considerable ammunition to those in Australia advocating full operational separation of Telstra.
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