Groups vie for $1.5b broadband roll out

Published: 3:50AM Saturday January 30, 2010 Source: NZPA

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A group of regional lines and fibre companies have put their hat in the ring to work with the Government on its $1.5 billion broadband roll-out.

The 19-strong New Zealand Regional Fibre Group (NZRFG), on Friday submitted what it called a number of closely aligned proposals for consideration in the Government's ultra-fast broadband initiative.

The group said its bids covered about 80% of the country and it was proposing to extend out beyond the 33 main centres the Government has highlighted as priorities for ultra-fast fibre broadband.

NZRFG founding member Vector also hoped to secure the Auckland region contract - where it already has substantial investment in fibre.

Vector chief executive Simon Mackenzie said that in its submission to Crown Fibre Holdings (CFH), which is running the tender process, Vector proposed to take its ultra-fast fibre network past 133,000 Auckland premises, including 18,000 businesses, within two years, connect 255 Auckland schools and 57 medical facilities within three years and pass 57% of businesses within four years.

Two of the NZRFG bids are consortium-based and many others incorporate regional collaboration between members.

The consortium proposals are from Waikato-based WEL Networks (the combination of WEL, Waipa and Velocity Networks and Hamilton Fibre Network), plus the Otago and Southland joint venture partnership of Flute Network (Dunedin and Central Otago's Aurora Energy, along with Southland's Electricity Invercargill and The Power Company).

Aurora Energy and the management company representing the other two Flute partners, PowerNet, are NZRFG members.

However, all other South Island NZRFG members - Enable Networks, Network Tasman, Electricity Ashburton, Alpine Energy, Network Waitaki and Westpower - were willing to work together.

Northpower has also submitted a bid for the Northland region.

The North Island trio of Unison, Horizon Energy and Eastland Group have all expressed interest in rolling out the initiative across their geographic areas.

CityLink and Electra have pitched further proposals to establish fibre networks in the Government's preferred candidate areas in the lower North Island.

Telecom earlier on Friday said it had provide a preferred commercial model proposal and an alternative commercial model to CFH.

The alternative proposal focuses on delivering a national network using Telecom's fibre-to-the-node programme as the logical springboard for the Government's vision of fibre-to-the-home proposal, said chief executive Paul Reynolds.

CFH chairman Simon Allen said he would know by the end of the day how many proposals had come in after 38 expressions of interest were received in November last year.

CFH will evaluate the proposals before reporting to Communications and Information Technology Minister Steven Joyce.

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