-
Fibre optic port - Source: ONE News / CNN -
Watch Video
-
Related
The government's Ultra Fast Broadband plan has been considerably delayed according to an industry group.
In September 2009, Communications Minister Steven Joyce said the future of broadband was in fibre and the government wanted to bring it to 75% of New Zealand homes by 2018 through a $1.5 billion roll-out of a nationwide fibre-optic network.
However, David Stone from the Telecommunications Carriers Forum told NZI Business today that the results of a crucial bidding process are still unknown.
Joyce said this afternoon that the government is committed to the plan.
He said last year that the government was creating a new Crown-owned investment company, Crown Fibre Holdings (CFH). It would choose government partners and manage investment in fibre networks.
The proposal was for CFH and each partner company to then establish a new Local Fibre Company (LFC) to roll out the fibre network's infrastructure.
Telecom, Canadian company Axia Netmedia and the Regional Fibre Group - a consortium of 19 electricity and broadband companies spearheaded by Vector - submitted proposals in January.
CFH was expected to announce its bidder shortlist in May but that has not yet happened.
Stone from the Telecommunications Carriers Forum said: "We are still waiting for CFH to either announce who it is going to enter into negotiations with, or more likely, that there is to be some additional re-tendering and there will be a delay in that process. However, this is still not clear."
Stone was non-committal on how the telecommunications industry feels about the delay, saying there could be some positives.
"Things are moving reasonably quickly. The delay is probably not a bad thing as it allows for a more comprehensive analysis of what the implications are but a protracted delay is not in anyone's interest."
The infrastructure rollout was due to have a mandatory layer 1 dark fibre, the actual tubed fibre, and, also optionally "active wholesale Layer 2 services" which are lit fibre offerings -activated fibre that carries the electronics.
He says he understands the delay has been caused by changes in thinking around the original proposal as some providers think the lit fibre should be mandatory rather than the dark fibre.
The issue is expected to dominate discussions at this week's Tel Con (Telecommunications and ICT) conference in Auckland.
Stone says the industry would like Joyce, who is attending the conference, to give them an updated timetable as to where the bidding process is at and some revised timelines so they can start preparing for an ultra-fast world.
However, Communications and Information Technology Minister Steven Joyce said today the government is committed to delivering Ultra Fast Broadband (UFB) to New Zealand homes and businesses.
Speaking via video conference to the conference in Auckland today, Joyce said: "The government is absolutely committed to delivering on our broadband objectives...of ultra-fast broadband services to three-quarters of New Zealand within the next ten years. This objective remains firmly within our sight."
He said CFH is making good progress and has finished its initial analysis of the 32 proposals received. Several have requested that the two-layered approach be scrapped.
Joyce says the debate on layer 1 versus layer 2 is not unique to New Zealand.
"Governments around the world who are encouraging the widespread deployment of next generation networks are considering how best to encourage investment in what will initially be infant industries selling services based on emerging technologies," he said.
"Pragmatic" changes may be made, he said.
A request for refined proposals will be released shortly.
