Tax-payers to fund $1.5 billion broadband roll-out
This year Communications and Information Technology Minister Steven Joyce is allocating $1.5 billion of taxpayer money to roll-out fibre-optic networks. Private companies will benefit from the new network capability, and local government development managers say the spending is worth it. Hutt City Council community development manager Gary?Craig says if the government takes this ?quantum leap?, education and health services will be included, resulting in social and community benefits. ?It also gives business the advantage to choose this region over others and to afford to retain staff,? says Mr Craig. He says the government?s approach differs from Labour, who gave small grants to fund companies such as Wellington?s Smartlinx 3, a private-public company that works to link up council services, schools, universities, and hospitals. ?As I understand, the government has announced it will spend the money this year and is now seeking expressions of interest from companies that have the capacity to roll out fibre-optic in the region. ?The government is asking all councils be involved in the roll-out, to streamline consent processes, and coordinate roadworks with installation,? he says. Late this year the bid winner will be charged with linking up the entire Wellington region. The Hutt City is one of the most connected cities in New Zealand, with Telstra Clear and Telecom hosting vast networks. ?The benefits are great for productivity from having a world class communication system, being able to transfer huge amounts of data, and giving that data storing ability to more people. ?Someone has to pay for it at the end of the day ? the ownership of the fibre-optic will be partly in government hands, and having a communication platform will be of benefit to everyone,? says Mr Craig. Porirua City Council economic development manager Ray Cowles says there are a number of network operators that currently are rolling out broadband in Porirua city. ?With the exception of Smartlinx 3, we don't know the details of what is out there as these are private companies. ?Registered network operators can lay their networks as of right under the Telecommunications Act, so apart from issuing road opening notices we have little direct contact with them,? says Mr Cowles. Chorus Networks is currently rolling out fibre to all areas of Wellington city under their 'Fibre to the Cabinet' programme. This network is set to cover the whole city this year, he says. ?Smartlinx 3 has concentrated their networks largely in the CBD and they have some 3.8km of fibre and ducts in the city. ?Porirua City Council does not fund broadband per se, but Council (along with Upper Hutt and Hutt City Councils) is a shareholder in Smartlinx 3,? Mr Cowles says. Porirua City Council owns 3,750 Class A (voting) shares in Smartlinx 3, a total investment of $265,000. He says the PCC does not "work with the Government in setting up commercial enterprises", rather is a member of the Broadband Operations Group (BOG), a Committee under the umbrella of the Wellington Regional Strategy. The BOG is a forum for councils to work together on, for example,?development of common technical standards and policies across the region to facilitate the deployment of fibre networks. ?This work is proceeding with the government's Ultra-Fast Broadband Initiative in mind,? he says. ? ? ?