Joyce sticks to the script on Telecom

Communications Minister Steven Joyce has scotched suggestions that Cabinet divisions are behind a two-month delay to the Government's $1.5 billion Broadband Investment Initiative.

He also played down speculation it might be considering revising its approach to the investment in favour of a deal with Telecom.

Responding to questions from Labour communications spokeswoman Clare Curran at a select committee meeting, Mr Joyce said there were no internal divisions.

The final decision on whether the Government would stick to its regional approach for rolling out ultrafast broadband had yet to be made, but Mr Joyce indicated that discussions with Telecom about its alternative proposals for a national rollout were not taking place at a high level.

The Government has proposed investing $1.5b in 25 local fibre companies that would build fibre networks in urban centres, with the goal of connecting schools and businesses and within 10 years 75 per cent of homes.

Telecom has suggested the Government should allocate the $1.5b to its network arm Chorus, which could roll out fibre to all schools that telecommunications companies could access on equal terms.

"Officials are threshing out [issues] with Telecom before we decide whether we should look at that more seriously," Mr Joyce said.

He conceded at a speech in Auckland last week that work to hammer out details of the scheme and begin implementing it were two months behind schedule. He told MPs the Government was ironing out details of its original scheme.

These include the geographical areas to be covered by the networks, the types of services local fibre companies would be able to provide, and the ways in which they might be regulated.

Mr Joyce said he sympathised with Queenstown, which would be excluded from the initiative if it was purely population-based, and that commercial partners could have a role in determining the areas to be covered.

The Government was considering whether incentives might be required to encourage customers to connect to the network and "the investment model". Some potential private sector investors in local fibre companies had called for a guaranteed return on their investment, at least early on, and the Government would consider this.

Economic Development Ministry officials were holding talks with their counterparts in the Education and Health ministries to ensure they were prepared to take advantage of ultrafast broadband.

Mr Joyce also promised that the Government would step up efforts to ensure the 25 per cent to 30 per cent of New Zealanders who do not use the internet could bridge the "digital divide".

He hinted money might be made available in next year's Budget for schemes such as Computers in Homes, run by the 2020 Communications Trust, which provide refurbished computers to disadvantaged communities.