Telecom's broadband proposal

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John Selkirk

PLANS: Telecom, whose CEO Paul Reynolds is pictured, has put forward two alternatives to the Government's $1.5 billion ultrafast broadband plan.

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Telecom has put forward two alternatives to the Government's $1.5 billion ultrafast broadband plan - one a proposal to connect all 2600 state schools and all hospitals in the North and South Islands with fibre within three years.

Chief executive Paul Reynolds said Telecom would not seek to profit from taxpayer funding that was put into the project.

As an alternative Telecom, would be willing to create a national network of 10,000 kilometres of "ducts", owned by a Crown-owned company, that all network and service providers could use to lay their own fibre.  The network would connect with existing infrastructure owned by Telecom and other telcos.

The proposals are in marked contrast to the Government's suggestion of a regionalised initiative, that would see the creation of 25 "local fibre companies".

"An ultrafast broadband fibre future will be integral to every child's education within a couple of years, opening up huge opportunities for our children to learn and communicate across the world no matter where they are in New Zealand," Reynolds said.

"This is also a strategically smart route to take, as schools can then form local 'broadband hubs', greatly increasing the opportunity of rolling out ultrafast broadband into rural New Zealand. We believe this first step would deliver the maximum benefits for the future of our nation faster than any other solution, and at a fraction of the cost."

Telecom's proposals are likely to get a frosty response from potential rivals, such as electricity lines companies that have also expressed interest in partnering with the Government.

Communications Minister Steven Joyce said when he unveiled his ultrafast broadband plan in March that Cabinet had debated, but decided against a centralised, national initiative. However, there have been growing doubts voiced that his plan could meet the Government's objective of connecting three-quarters of homes with fibre within 10 years.  

Telecom said in its submission that $1.5 billion would not be sufficient to connect 75 per cent of New Zealand homes "under any scenario". But it would not rule out participating in a regionalised broadband plan.

"If a regional approach remains the Government’s preferred option, we will tender for those regions where it is commercially viable to do so."

Federated Farmers welcomed Telecom's proposals saying they would provide what the Federation had sought - fibre infrastructure deep into the rural hinterland.

"Federated Farmers is impressed with Telecom's submission and timeline," telecommunications spokesperson Donald Aubrey said.

"Telecom has identified and resolved what rural New Zealand now needs - high speed nodes for rural New Zealand to access. This achieves vital geographic coverage for rural New Zealand to leverage off.  This meets a key concern the Federation expressed when detail of the broadband investment initiative was first announced."