5. LOUISE UPSTON (National—Taupō) Link to this
to the Minister for Communications and Information Technology
What further progress has been made on rolling out faster broadband around New Zealand?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
Further to yesterday’s announcement of the first partners of the Ultra-fast Broadband Initiative, this morning I announced the short-listing of tenderers for the Rural Broadband Initiative. This follows quickly on yesterday’s announcement of the partners that will help to roll out ultra-fast broadband around Northland and through cities and towns in the central North Island. The rural initiative received a number of high-quality bids, and three have now been placed on a short list. I expect the final partner to be announced early next year.
Delivering much faster broadband will greatly improve telecommunications, lift productivity, and provide for faster growth in New Zealand relative to that of the rest of the world. Of more immediate benefit, the two deals announced yesterday will directly lead to the creation of an estimated 300 jobs across the ultra-fast fibre roll-out in Taranaki, Waikato, and the Bay of Plenty, and the Northpower roll-out will see an extra 50 people employed. In addition, the Rural Broadband Initiative will see hundreds more people being employed in developing and deploying the network to rural schools and communities.
Is it the Government’s intention that legislation for a regulation-free period until the end of 2019 for successful bidders will apply to the Rural Broadband Initiative as well as to the ultra-fast broadband scheme; if so, will that regulation-free period apply only to new fibre or to other technologies that have not been laid yet and that are agreed to in those schemes?
Firstly, I do not agree with the member that it is a regulation-free period, at all. The pricing will be set by contract between Crown Fibre Holdings and the bidders for the ultra-fast broadband. The rural broadband will be different. It will not have the same regulatory mechanism as the ultra-fast broadband, as it also differs from it in a number of other ways.
Yesterday’s kick-off of the urban broadband roll-out generated some excellent feedback, including from the local councils in the coverage areas, which universally welcomed the announcement. In addition, InternetNZ stated: “Ultra-fast broadband is a game changer” and “The services will be affordable and really will drive uptake of fibre”. Even IDC analyst Rosalie Nelson said “it is encouraging to see the emphasis that is being placed in the two regions on making fibre accessible and affordable.”