5. MELISSA LEE (National) Link to this
to the Minister for Communications and Information Technology
What progress has the Government made on its urban broadband initiative?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
I am pleased to report that this morning I released the final investment model for the Government’s $1.5 billion ultra-fast broadband initiative. This will deliver ultra-fast broadband to 75 percent of New Zealanders within 10 years. Delivering fibre to the home is an essential part of the infrastructure for a strongly growing 21st century economy. It will play a key role in improving the productivity of our country as we move out of recession and into a period of growth.
The Government has confirmed that its investment will be directed to open access, passive fibre network infrastructure. This will be done in partnership with co-investors through local fibre companies, which will be responsible for the roll out of fibre in their area and will be permitted to participate in the wholesale market. Although consistent with the draft, changes have been made to provide greater flexibility for different-sized proposals, more regional coverage, and significantly more detail on commercial arrangements and technical issues. The next steps will be the establishment of Crown Fibre Holdings and the Ministry of Economic Development issuing invitations to participate to potential partners.
Clare CurranIs the Minister satisfied, in light of the Telecom contractor dispute, that Telecom can fulfil all of its current obligations and also provide for a significant proportion of the additional broadband that New Zealand so urgently requires?
As the member knows, it is inappropriate for me to comment on specific private arrangements between employees and their companies. I can assure the member that the demand for skilled telecommunications workers is only going to grow over the next 5 to 10 years as a result of the Government’s investments in both rural and urban broadband infrastructure, so I encourage all skilled technicians and say that there will be plenty of work for them in this environment.