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Source: ONE News -
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The government wants to form a Crown-owned investment company to deliver on its commitment to developing ultra fast broadband.
The government has earmarked $1.5 billion for New Zealand's broadband network over the next 10 years so as to provide fast access to 75% of New Zealanders.
Communications and IT Minister Steve Joyce says the proposed Crown Fibre Investment Company (CFIC) would partner with private investors and invest in regional fibre companies.
The investment would give the government access to the fibre optic network infrastructure in the 25 towns and cities covered by the initiative - and it is hoped private investment will match the amount being put forward by the government.
"This is a big investment both in terms of the money committed and the returns it will bring. It's essential that we get it right the first time," Joyce says.
The new broadband should be up to 50 times faster than speeds available at the moment.
"They will be able to watch TV comfortably and easily over their computer screens, they will be able to run businesses from home," says Prime Minister John Key.
He says the move would bring New Zealand into the 21st century, enabling it to compete with countries such as Korea, Singapore and Hong Kong.
"We are a small country, we are a long way away and if we want to connect with the world in the cheapest, most efficient way possible, we have to have world-class broadband capability," says Key.
How it would work
The CFIC would focus on providing the cables needed to enable private companies to connect to it to provide the service and Joyce says all telecommunications companies will have the option of using the fibre.
A key element is "dark fibre"; fibre optic cable in the ground or on poles but which is not yet active. The fibre becomes operational by adding optical electronics at each end, to provide a service to households and businesses.
Internet service providers and other telecommunications providers can purchase access to dark fibre, add their own electronics and then use it to provide a retail service.
"The government investment will be in fibre networks that will operate only at the wholesale level, selling `dark fibre'-based services enabling telecommunications providers to design and specify their own downstream services," says Joyce.
He says the government involvement in the commercial side of the operation would be minimal.
The proposal is open for submissions until April 27.
Who gets it?
The 25 centres identified are based on population and range from Auckland, with 1.2 million people, to Oamaru, with 12,681. Nowhere smaller than Oamaru would be considered.
Those in areas outside the 25 identified would eventually get better services but that would be in the second phase of the initiative. Joyce says they can expect faster broadband but would not have the fibre enabling the ultra-fast broadband.
The 25 centres, in order of population, are: Auckland,
Christchurch, Wellington, Hamilton, Napier and Hastings, Dunedin,
Tauranga, Palmerston North and Fielding, New Plymouth and Hawera,
Kapiti and Levin, Nelson, Rotorua, Whangarei, Invercargill,
Wanganui, Gisborne, Cambridge and Te Awamutu, Blenheim, Timaru,
Taupo, Masterton, Whakatane, Ashburton, Tokoroa, and Oamaru.
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Add a Comment:
Post new commentjoelataylor said on 2009-04-01 @ 18:13 NZDT: Report abusive post
I find it really hard to believe that Queenstown and Wanaka aren't on this list - and 10 years??? Agh!
dusty2174 said on 2009-04-01 @ 11:51 NZDT: Report abusive post
How about making sure the rest of the country can get broadband first!!