7. Hon TAU HENARE (National) Link to this
to the Minister for Communications and Information Technology
What progress has the Government made on its initiative to roll out ultra-fast broadband in urban areas?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
What a fine question. Yesterday the Government released the invitation to participate in our $1.5 billion ultra-fast broadband investment initiative. This allows companies to submit their bids to co-invest with the Government and local fibre companies, which will roll out the fibre to schools, hospitals, businesses, and homes. The invitation to participate, or ITP, is based upon an innovative commercial model that will see the Government largely fund the deployment of fibre into communities, and the Crown’s local fibre company partner gradually taking a greater share in the local fibre company as it connects customers. This risk-sharing model reduces the risk around demand uptake, and will further encourage investors to participate.
Access to broadband is part of the essential infrastructure of a productive and growing economy, and will be crucial to New Zealand improving its competitive advantage in the global market. The Government understands that private sector companies have made a commercial decision not to invest in fibre to the home themselves, and so wishes to improve the business case for broadband because of the public benefit to be gained from such a network. In addition, the benefits to New Zealand of improving rural broadband will be significant, and that is why we are spending an additional $300 million to improve rural broadband services.
Clare CurranDoes he believe that structural separation of Telecom New Zealand prior to the roll-out of the Government’s broadband reforms is necessary to achieve truer competition at the wholesale and access levels, and can he confirm that he met with Telecom New Zealand’s chief executive officer, Paul Reynolds, last Friday to discuss structural separation?