Chorus says it's willing to share ducts and phone poles

Telecom network arm Chorus has told the Government it would consider sharing its underground ducts and telephone poles on "sensible commercial" terms with rival companies that wanted to lay their own fibre-optic cable.

It would be the first time Telecom has made its ducts available to competitors.

The concession could aid local fibre companies set up as a result of the Government's $1.5 billion ultrafast broadband investment initiative.

It came in a submission to the Economic Development Ministry, which is considering measures to aid the fibre scheme, after officials weighed the merits of regulating access to existing fibre and other infrastructure.

Chorus said it would take time to put together commercial offers for access to its ducts and poles, warning that it did not want to set "unrealistic expectations".

Pricing for access to its ducts would need to reflect the cost of upgrades and maintenance.

Some fear commercial negotiations are unlikely to come to a fast or satisfactory conclusion.

The Telecommunications Users Association doubted telcos and lines companies would universally co-operate in providing their ducts on fair commercial terms and said the ministry might need to impose rules.

Wellington fibre network operator CityLink also believed Government intervention would be required to ensure access to infrastructure "in a timely manner and at realistic commercial rates". The Commerce Commission suggested an industry code that it would approve and enforce, but acknowledged that would require a law change.

The New Zealand Regional Fibre Group, comprised mainly of lines companies that – like Telecom – have infrastructure that could be subject to regulation, said it would prefer commercial negotiations.

The ministry has given submitters till Friday to comment on one another's proposals

Chorus said stringing fibre-optic cable over phone and power poles would be viewed "extremely negatively" by communities.

Officials appeared to be putting the speed and cost of the ultrafast broadband roll-out over its quality. "We do not share the Economic Development Ministry's optimism that a roll-out using poles will be optimal ... in that [it could] attract considerable consumer backlash, and additional maintenance costs. We think a longer term view needs to be taken," Chorus said.

The Telecommunications Users Association said lines firms NorthPower and Vector had deployed fibre over power poles – a "low-cost, fast and effective" approach that it expected local fibre companies would want to follow.

Chorus opposed mandating access to existing fibre, saying it was likely local fibre companies would want to build their own connections to link networks to be built in 33 cities and towns under the broadband scheme.