5. JONATHAN YOUNG (National—New Plymouth) Link to this
to the Minister for Communications and Information Technology
What progress has been made on the ultra-fast broadband initiative?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
Today marks a very important milestone for ultra-fast broadband as the Government green-lights the first regions to move from the development phase to the roll-out phase. This phase begins next week with Northpower deploying fibre in Whangarei, closely followed by WEL Networks in the central North Island early next year. Ultra-fast broadband is coming to the member’s city of New Plymouth, to Whangarei, to Hamilton, to Cambridge, to Te Awamutu, to Tauranga, to Wanganui, to Hāwera, and to Tokoroa.
What products can consumers expect to receive as a result of ultra-fast broadband being deployed in these urban centres?
Crown Fibre Holdings is very pleased with the pricing it has secured on behalf of customers. Wholesale household prices will start at $40 or less per month for an entry-level product and $60 per month for the 100-megabit product. There are no connection charges for households. Businesses, schools, non-governmental organisations, and households will all soon be benefiting from new fibre connections, bringing them high-quality videoconferencing, opportunities for e-health, and interactive education, and increasing New Zealand’s connectivity as a driver for greater productivity and economic growth.
Clare CurranWill the Government guarantee that Crown Fibre Holdings will have concluded negotiations and that the Government will have announced agreements with the remaining 25 ultra-fast broadband regions before the next election?
That is certainly my expectation, but I point out to the member that it is important that when we conduct these commercial negotiations we do not put artificial deadlines on individual negotiations. We could throw as much money as we wanted at them and do the deal tomorrow—I know that is the member’s party’s past history—but actually we are looking for the best value for money for taxpayers.
This is the start of a nationwide roll-out process that will see 75 percent of New Zealanders able to access the Internet at ultra-fast speeds. The Government is making this very significant investment in ultra-fast broadband because it will have a transformational impact on how we work and interact in the years ahead. It complements other sizable investments we are making in infrastructure like roads, rail, schools, and hospitals. In the short term the projects announced today will employ hundreds of people in the network deployment and operation, and in the long term it will give our economy a competitive advantage against the rest of the world.
Will the Government make public the details of how it arrived at the access prices negotiated by Crown Fibre Holdings with partner companies, given that it is about to legislate to provide those companies with a 10-year period free from regulation by the Commerce Commission, and given that its ultra-fast broadband programme is being funded by $1.5 billion of New Zealand taxpayers’ money; if not, why not?
For the member’s benefit I say that we have obviously released the pricing today, and all the information that goes with that pricing will be released in due course. But, of course, we are in the middle of commercial negotiations. I note for the member that these are very, very competitive prices, and if we are able, as I believe we are, to lock them in for the next 9 years, that is of great benefit to New Zealanders all over the country.
Hone HarawiraTēnā koe, Mr Speaker. Is he aware that in a bid put forward by Torotoro Waea Partnership, an alliance of 24 members including various iwi and industry partners, there is an intention to link 1,000 marae? Will marae be prioritised in the broadband initiative?
I am aware that Torotoro Waea Partnership has submitted a bid to the Ministry of Economic Development for the $300 million Rural Broadband Initiative, which is separate from the ultra-fast broadband initiative for urban areas, which I have made announcements about today. The Rural Broadband Initiative provides an opportunity for marae to be connected to better broadband services. I am looking forward to seeing the Ministry of Economic Development’s analysis of how bidders meet objectives around connecting marae, as well as schools and rural communities. I intend to announce a short list for this initiative before Christmas. Once again, this is excellent progress when compared with the previous Government, which took about 7 years to get around to doing anything in the broadband space.