InternetNZ warns against delays to UFB process

InternetNZ today warned that the tender process currently under way to select partners in the Government's ultra-fast broadband initiative must not be delayed to suit the interests of the incumbent carrier, Telecom NZ.

Telecom announced on Monday that it was considering a structural separation of its Chorus business, and a story in the media over the weekend suggested that the Government might be considering purchasing a share of a structurally separated Chorus. That was reinforced by a story today quoting an unnamed source close to the Government saying the same thing.

"With Crown Fibre Holdings finally in the driving seat and beginning to run the UFB process, now is the worst possible time for further stalling and delays," says InternetNZ Policy Director Jordan Carter.

"We have always supported structural separation of Telecom on its own merits, and a separated Chorus could be a key player in the UFB as it develops, as a partner to LFCs or as a contributor in its own right.

"There is no justification in delaying further the rollout of ultra-fast broadband simply to accommodate Telecom's latest strategy," he says.

"It is also very important that there be no concessions made by further varying the operational separation Undertakings Telecom committed to in 2007. The operational separation framework would need to be considered if Chorus were to be structurally separated - but discussion of changes is not appropriate until after, not before, Telecom fully commits to structural separation.

"The funds the Government has set aside for investing in new fibre infrastructure must remain dedicated to that rollout of new infrastructure.

"No analysis has been done which could show a public benefit in further delays to rolling out fibre, or to diverting funds into a purchase of the old copper network.

"The Government has been firm in pursuing the right path for the UFB. They should not change tack now," concludes Jordan Carter.

ENDS

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