Telcos' broadband report draws flak

A report questioning the need for a fibre-optic broadband network has been called a last-ditch attempt by broadband providers to sway government decision-makers.

Commissioned by Telecom, Vodafone and TelstraClear, the report said planned broadband investments by the three telecommunications companies would deliver adequate services for New Zealanders and it was doubtful there would be demand for the high speeds provided over the fibre-to-the-premises network envisaged by the Government.

The three telcos plan to improve their networks by extending fibre closer to homes and installing high-speed broadband technology in exchanges, while the Government intends to invest $1.5 billion in a fibre network that would reach three-quarters of all homes.

The Telecommunications Users Association chief executive, Ernie Newman, said the report by independent consultant Castalia was a message to government decision-makers yet to determine the details of the plan.

"It's a last-ditch attempt by telcos. They are saying, `This is our industry, get out of our industry'. But I have every reason to think they have not struck a chord with the Government."

Telecom, Vodafone and TelstraClear would play a role in the fibre plan but should not be allowed to dominate, Mr Newman said. They were eager to promote a monopolistic model where companies owned the infrastructure and provided services over it and it was crucial this did not happen.

"Fibre-optic is a disruptive technology, it's `starting again' stuff. It's really important we get the fundamentals of it right technically and commercially."

It is understood the fibre network will be open access, allowing providers to offer services over it on equal terms.

The suggestion that lines companies such as Vector build the network on their existing infrastructure and providers offer services over it had merit, and Vector was one of several lines companies to have expressed interest, he said.

The decision to jointly commission the report was unusual considering the fierce competition between Telecom, Vodafone and TelstraClear.

- © Fairfax NZ News