Growing power base for NZRFG

Media Release
14 December 2009

Growing power base for NZRFG

Competition for a slice of the Government's $1.5 billion ultra-fast fibre broadband fund is heating up with the launch of a Waikato-based fibre consortium.

New Zealand Regional Fibre Group members WEL Networks, Velocity Networks and Waipa Networks, along with Hamilton Fibre Network Limited, have combined to work on a bid for the Government’s nationwide fibre roll out.

Together they will represent the Waikato region but have also included reach into Bay of Plenty - with the support of Tauranga City Council and Environment Bay of Plenty.

The announcement comes alongside the addition of another member to the New Zealand Regional Fibre Group.

South Island lines company Westpower is the latest to join and with membership now sitting at 18, the group comfortably has infrastructural reach across more than 75% of New Zealand.

NZRFG spokesperson and WEL Networks CEO Julian Elder says a small number of consortia will be formed within the wider group to enter the bid process, from which the Government will choose private sector partners to implement its ultra-fast fibre broadband network next year.

More consortia are likely to be formed by NZRFG members in coming weeks.

“There certainly won’t be 33 Local Fibre Companies which some pundits are wrongly predicting, and we have said that from the start,” says Dr Elder.

“What our members are doing is joining together and sharing their expertise to represent various regions because it makes sound business sense and will help meet the Government’s expectations. Collectively the NZRFG can roll out fibre faster than most and our desire is to take fibre to the premise and fibre to the home.”

That’s why Dr Elder believes the NZRFG is so well placed to deploy ultra fast fibre networks to the Government’s preferred 33 candidate areas in what will be a major boost for businesses, health providers, schools, tertiary providers and the community in general.

Meantime, Waipa Networks chief executive Ray Milner says as fibre providing contenders, NZRFG member companies are working together to implement the best bids possible.

“The fact is, we are already in so many of these communities with existing, proven and effective infrastructure - and have been for decades. We’re not here to protect assets but to take New Zealand forward by using our assets wisely and providing open access fibre networks,” says Mr Milner.

“The likes of Westpower, Northpower, WEL and Waipa are great examples of that and fibre will become a natural extension of what we already do.

"In many cases NZRFG members are community owned so we are there to do right by the people in our community and we believe our communities deserve the connection speeds that fibre will offer.

“Copper networks won't allow us to catch up to the rest of the world and that would have a very harmful impact on our economic productivity. The Government has made it clear that won’t happen.

"Ultra-fast fibre networks will strengthen our economy and lay the platform for future prosperity. They will be the opportunity provider for future generations and they must be open access to ensure the consumer has the power to decide what they want from whom. This is a major strength of NZRFG members, as they are dedicated to providing equal open access to all service providers - be it television services, telephone, internet or whatever else.”

Mr Milner says New Zealand’s existing broadband is simply not good enough and there is dire need for much better, which lines companies like Northpower are proving they can provide through fibre platforms.

He sees the Government’s fibre broadband initiative as a tremendous opportunity to leapfrog New Zealand into a position of having the one of the world's best broadband connections through what he labels, ‘fibre-driven speed of light communication technology’.

Ultimately, Dr Elder says the NZRFG would like to see ultra-fast broadband connections available to all New Zealand homes and businesses.

“When you take into account our existing electricity networks and associated rights of way, as well as our proven engineering capability, the NZRFG members are extremely well placed to build a fibre network at a very competitive cost.

“Giving the ultra-fast fibre broadband funds to the incumbent would mean more of the same for New Zealand and the fact is copper simply can’t deliver our current, let alone future, requirements. Without fibre we will miss a great opportunity to open ourselves up to the world of communication,” says Dr Elder

ENDS

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