5. JOHN HAYES (National—Wairarapa) Link to this
to the Minister for Communications and Information Technology
What announcement has he made today on the rural broadband initiative?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
The Government today issued the request for proposals for the Rural Broadband Initiative, which close on 12 November 2010. The Government intends to sign a heads of agreement before the end of the year, which will lead to new fibre being laid in the ground in rural areas shortly thereafter. With our approach, I am confident that we will achieve our target of 80 percent of rural households and businesses having access to broadband services of at least 5 megabits per second, and the remaining 20 percent on at least 1 megabit per second, within the 6-year period of the policy. This will be a vast improvement in Internet experience for rural households.
The expressions of interest informed that decision. We are now seeking national coverage proposals rather than regional proposals. It is clear that a range of national infrastructure companies will be able to meet the Government’s rural broadband objectives. In addition, they have the financial backing to guarantee their proposal nationwide. It is also evident that although regional bidders were able to make a significant impact on broadband coverage in rural areas, they would fall short of achieving the Government’s target for coverage.
How will the now national Rural Broadband Initiative fit the regional structure of 33 local fibre companies proposed for the urban ultra-fast broadband initiative, and does he now see that as coming with one national supplier, too?