3. JO GOODHEW (National—Rangitata) Link to this
to the Minister for Communications and Information Technology
What decisions has the Government made on improving broadband to rural areas?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
On Monday the Government commenced commercial negotiations with Telecom and Vodafone for the provision of vastly improved broadband services to rural New Zealand. The Government inherited a position where half of rural New Zealand was still using dial-up and only 20 percent of customers were accessing speeds of five megabits or more. Our policy and the resulting investment will see that proportion rise to 86 percent of rural households and businesses, with 95 percent of rural schools receiving a direct fibre connection, along with numerous marae and their adjacent communities.
The joint Vodafone and Telecom proposal is based on proven existing technology and provides the Government with the confidence that it can be deployed. The joint proposal was the only one that increases mobile coverage and will ensure serious day-one competition and choice in the last mile, with many rural customers being able to choose from fixed wireless, ADSL2, fibre to the premise for those directly passed, and mobile broadband. It has been designed on an open access basis to increase competition in rural areas, and other providers will be able to co-locate with the Government-funded infrastructure, encouraging competition and innovation for rural services.
Clare CurranWhat guarantee can he give rural New Zealanders that they will receive broadband of the same quality and at the same price as their urban counterparts?
The rural broadband programme is designed to do exactly that: to increase speeds to those that are currently already being enjoyed in urban areas and to do it on a competitive basis. Those negotiations on price are continuing, and I am confident that there will be competitive prices.
I have received positive feedback from a wide range of sources. Rural Women said it was “pretty damn good” and that the Government and telecommunications companies should just get on with it. Telecommunications Users Association of New Zealand Chief Executive, Paul Brislen, said that the open access aspects of the policy would ensure that Telecom did not regain a monopoly position. Even the International Data Corporation, which is not a noted enthusiast for Government policy, believes that the Government has opted for a pragmatic outcome. I know that some of the interested parties who missed out are disappointed—and of course Labour members, who wish they had thought of it—but we have made the best decision for our rural communities.