Rural NZ must reap the benefits of fibre broadband

Media release
2 June 2010

Rural NZ must reap the benefits of fibre broadband

New Zealand must foster the development of rural intellectual property and facilitate its commercialisation and export – if the rural sector is to reach its potential.

But that can only happen if rural New Zealand receives ultra-fast broadband, something one former Northland deer industry leader believes could lead to the age-old farm shed becoming a global business link for Kiwi farmers.

At least that’s the opinion of Northpower chairman Warren Moyes who views speed of rollout for fibre-based broadband networks throughout the country as critical for New Zealand’s economic prosperity.

Speaking on behalf of the New Zealand Regional Fibre Group at the NZ Agricultural and Horticultural Outlook Summit, Mr Moyes said that getting the rural broadband investment right is essential.

And he is adamant the 19 members of the NZRFG have the formula to quickly connect rural New Zealand to the rest of the world.

The NZRFG earlier this week submitted responses to the Government’s Rural Broadband Initiative which the group stated would exceed the coverage and broadband performance objectives required by the Government.

“The fact is, a large number of our members are already doing this by laying the basis of core fibre networks in their regions,” said Mr Moyes in his speech, while pointing to Northpower and Electricity Ashburton as examples of electricity lines companies with fibre already running past farm gates.

Connectivity within those gates is the next piece of the puzzle.

“With the primary sector contributing a major share of New Zealand’s export earnings, there is no positive growth scenario that does not rely to a large degree on extracting more value from our rural know-how. “

That requires a strong virtual link up between all the parts of the value chain, be those provincial, city or globally based, he suggested.

“Broadband is the infrastructure that will enable new business models to be created and deployed to get our rural intellectual property past the farm gate and to translate it quickly to new markets that can maximise its value,” said Mr Moyes.

“Without effective broadband service - and that means not just speed and reliability, but also flexibility, price and access to a vibrant eco-system of retail solutions providers - New Zealand’s rural IP will not reach its full potential in global markets.

“In the New Zealand of the very near future, there has to be a very real sense that when a man goes into his office or shed – be that a woolshed, cowshed or work shed - those places become the world.

“So getting rural broadband investment right is essential and that means the right decisions: about financing (that includes getting the best leverage for the taxpayer’s contribution), about structure, regulation, and technology choices.”

Mr Moyes said that the Government’s current broadband policy is largely on the right track.

“I maintain that a national network of smaller regional providers driven by community ownership and collaborative relationships with various infrastructure, technology and retail providers working to agreed national standards, is the right formula to achieving the best result in fibre-based rural broadband rollout.

“Community ownership and control is simply better at responding to what rural business people need. For community-owned providers, on the other hand, giving regional communities genuine choices is business as usual. We have to walk the talk. Within the NZRFG, we have a firm commitment to national standards, but our business model is firmly local. Our customers, shareholders and neighbours are essentially the same people.”

Mr Moyes said the regional model is an enabler of rural innovation because it breaks down the technology layers and barriers to provide a positive step-change in productivity and efficiency gains.

As a collaboration of infrastructure companies and solution providers, the NZRFG’s rural service proposals span fibre, wireless and mobile technologies, while delivering value through interoperability, he added.

“That extends to our rural customers, who – as we know – are often the kind of people whose first instinct when they see a complex piece of machinery is to crack it open with a spanner and see how it works, and possibly put it to a different use to what was intended.

“The spread out geography and complex logistics of farming places demands on telecommunications that can only be met by a seamless combination of fibre, wireless and mobile technologies.

“In our view, the taxpayer funds should be directed towards creating a fully functional platform which provides open access to a range of competing Internet Service Providers (ISPs) and other retailers. It should not stop short of that.

“What rural communities need is a network that is fully functional and ready to carry the traffic of any number of retailers and ISPs delivering a large range of services to consumers. This story won’t happen without an effective investment in the technology to deliver high speed broadband to farmers,” said Mr Moyes.

ENDS

Editors Notes:
The NZRFG is a group of regional operators including lines companies and local fibre companies, which has come together to support the Government’s efforts to introduce ultra-fast broadband to New Zealand. Members include Alpine Energy, Aurora Energy, CityLink, Counties Power, Eastland Group, Electra, Electricity Ashburton, Enable Networks Ltd, Horizon Energy, Network Tasman, Network Waitaki, Northpower, PowerNet, Unison, Vector, Velocity, Waipa Networks, WEL Networks and Westpower. www.nzrfg.co.nz

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