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Source: Reuters -
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Telecom says it wants to play a major part in the government's plans to invest $1.5 billion in ultra fast broadband.
The government in March announced plans to provide ultra fast broadband to 75% of the country over the next 10 years via a Crown Fibre Investment Company (CFIC) that would partner with private investors and invest in regional fibre companies.
Telecom on Tuesday said it has provided two proposals for the government to consider in the delivery of the new technology.
The first proposal would co-ordinate the government's investment
with Telecom's existing and future fibre network to extend fibre
optics. The other would create a national network of pipes that
house the fibre optic cables, owned by the CFIC, which all network
providers would be able to use.
Under Telecom's proposals, the 75% fibre coverage area would be expanded to include places such as Queenstown, Greymouth, Rangiora, Gore and Waiheke Island which were not included in the government's original plan.
"Telecom's proposals are a combination of building on the 23,500 km of fibre optic cable already in the ground and integrating the government's $1.5 billion investment with Telecom's existing plans to extend the reach of fibre to more and more New Zealanders," said Telecom CEO Paul Reynolds.
Telecom says prices would be set so that it would not make a profit from the government component of any investment.
The company says the proposals will also benefit schools and hospitals, and potentially rural communities.
With its fibre network, Telecom would connect 2,000 schools and all hospitals in the North and South Island to the new technology within two years of starting work, with the remaining 600 schools connected six months later.
Once schools have the technology, Telecom says they can act as broadband hubs that would increase the opportunity for rolling out ultra fast broadband into rural New Zealand.
Reynolds has described the proposals as a "strategically smart" and cost efficient option for the government.
Market analyst Anne Hare says it is good to see Telecom supporting the government decision although questions remains around competition.
She says open access under the second proposal would provide
fair competition but using Telecom's own infrastructure would mean
prices would have to be agreed.
