Government funds have been directed at improving broadband uptake, which will be welcome news to business and the general public alike.
Budget 2008 allocates $500 million in the next five years targeting high speed open access urban fibre networks, improved rural connectivity and improved international links.
The Broadband Investment Fund includes an additional $325 million of operating funding between 2008 and 2013 as well as $15 million of capital funding in 2008/2009 to support the roll out of high speed broadband.
There are three areas the fund will target:
Facilitating high speed broadband to business and organisations such as universities, schools and hospitals.
Extending the reach of broadband into regions currently underserved.
Improving the strength of New Zealand's international connections.
OECD broadband statistics released this week show New Zealand is 19th out of 30 countries in regards to broadband uptake and is the sixth fastest growing OECD country in terms of broadband penetration.
According to Internet NZ, 18.3 out of every 100 Kiwis have broadband, compared to the OECD average of 20. That is a lift since the last OECD report, something that InternetNZ Executive Director Keith Davidson attributes to recent regulatory reforms.
"If New Zealand maintains this rate of growth then it will continue to slowly improve its position relative to other OECD nations."
In a release on Monday Davidson said: "To fully leapfrog into the top half of the OECD, substantial investment and subscriber uptake in a ubiquitous open access fibre network is required."
The question is, has this Budget provided what is needed?
The initiative will no doubt be welcome news to the rural community.
According to rural broadband provider Farmside, people are increasingly turning to the internet in response to rising fuel costs.
During April Farmside reported a 97% increase in rural broadband inquiries.
They say the average driver in rural New Zealand spends 300 hours driving nearly 15,000 kilometres each year, with 30% of this travel for chores such as shopping or carrying our personal business such as banking.
Comparison
The National Party announced their intentions around broadband technology earlier this month, showing it is likely to be a key policy area leading into the general election.
National promised to spend $1.5 billion on getting ultra-fast broadband connections to New Zealand homes, schools and businesses if it wins the election.
National wants to roll out fibre-optic cables, which mean faster internet, to 75% of homes. In the first six years, businesses, schools and health facilities will be the priority. Party leader Key says they would also accelerate roll-out to rural and remote areas, with $48 million to be spent on the approach.
