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7 February 2010

Is broadband ambitious for rural New Zealand?

While Federated Farmers is welcoming news Government is to commence negotiations on the $300 million Rural Broadband Initiative (RBI), the announcement raises a number of questions that need answer.

“When it comes to broadband, Federated Farmers has been pretty upfront about seeking a step change to future proof rural New Zealand,” says Don Nicolson, Federated Farmers President.

“Our bottom line is pretty simple and ambitious. That’s to get the greatest number of the one million Kiwis deemed ‘rural’ by the RBI onto the fastest broadband as quickly as possible, as efficiently as possible and as cheap as possible.

“We’re not just talking download speeds but upload speeds too.

“While download speeds are important, farmers want the ability to upload content to the web. Ultrafast upload speeds give us the opportunity to play a full part of the digital economy as well as having a gateway to true internet telephony.

“This though needs competition to drive innovation, service and price.

“For some 800,000 Kiwis in ‘rural’ New Zealand, Federated Farmers wants monthly wholesale prices of around $35 and retail at around $60 for speeds of at least 10 megabits per second (Mbps).

“While there is talk of five Mbps by 2016, the first urban broadband deals are for speeds twenty times greater. Are we gong forward or treading water?

“Generally our copper is old and has its challenges, so Federated Farmers knows the solution demands a number of technologies and not just fibre. 4G Long Term Evolution (LTE) wireless is relatively new and is being rolled out in Australia, India and China. .

“So the jury is still out on these negotiations.

“Government needs to make sure it is as ambitious as Federated Farmers is in negotiating the next stage. While we’re not privy to all bid details or a party to the official negotiations, we understood at least one of the other bidders was offering faster speeds sooner and at a competitive cost too.

“Ultrafast rural broadband means more productivity and social connectedness because rural people are people too. We want to export protein and fibre from the country, not our people. We want to grow exports so the country can pay its bills.

“The outcome of this RBI process will have an impact for at least a quarter of a century.

“It is that critical and demands we get the best collective possible outcome for rural New Zealand no matter how rural is defined.

“Because of this, Federated Farmers supports the Minister’s suggestion that if a satisfactory outcome cannot be negotiated in the next quarter, then the RBI should be retendered.

“If it takes a bit longer to get the right outcome then so be it,” Mr Nicolson concluded.

ENDS

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