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Wireless internet broadband modem - Source: ONE News -
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The Government says it expects to be able to meet its goal of connecting homes to ultra-fast broadband, despite Labour producing a report which says it would cost much more than original estimates.
The Government's campaign pledge is to put up $1.5 billion, ask the private sector to match it, and connect 75% of homes within six years.
Business think tank the New Zealand Institute said last month it believes the private sector will at least match the $1.5 billion.
In Parliament on Wednesday Labour's communications spokeswoman Clare Curran cited a report written for the Treasury which said the cost will be between $5.3 billion and $10.4 billion.
She said its author, Murray Milner, is a former Telecom chief technology officer and a respected consultant.
"This means the National Government simply cannot fulfil its election promise to spend $1.5 billion to achieve this goal," Curran said.
"The report...says that $1.5 billion would not be sufficient to connect 75% of homes even if matching investment from the private sector was forthcoming."
Transport Minister Steven Joyce said the report signals a wide range of costs which vary considerably depending on the technology used and the level of take-up.
"The figures quoted (by Curran) are at the extreme end of the range, the report also quotes much lower figures," he said.
"With the level of co-investment from the private sector that the Government expects, and an appropriate level of use of existing fibre-optic structure, we believe we will get most, if not all, of the way to our goal."
