UFB deals signed with Telecom, Enable Networks

Tuesday 24th May 2011 1 Comment

The Government has signed deals with Telecom and Christchurch City Council-owned Enable Networks to roll out an ultra fast broadband (UFB) network.

Deals with Telecom would see a fibre optic network built in Auckland, the eastern and lower North Island and most of the South Island. Enable will build a UFB network for Christchurch, Rangiora and surrounding areas.

As part of the deal, Telecom must split off its network arm, Chorus, into a completely separate company, so that all broadband retailers can compete fairly to on-sell wholesale ultra fast broadband.

Chorus will maintain the Kiwishare obligations currently placed on Telecom, a statement today from Communications and Information Technology Minister Steven Joyce said.

The Government already has partnerships in place to roll out UFB, as part of a $1.5 billion initiative, with Ultra-fast Broadband Ltd and Northpower covering the rest of urban New Zealand.

A Rural Broadband Initiative (RBI) is rolling out faster broadband to rural communities.

Today's agreements with Telecom and Enable meant the Government would reach its goal of bringing ultrafast broadband to 75% of New Zealanders by 2019, the statement said.

The rollout would start immediately with schools, hospitals and 90% of businesses covered by 2015.

Joyce said access prices negotiated by Government agency Crown Fibre Holdings would ensure the benefits of fibre were within easy reach of businesses as well as everyday New Zealanders.

Wholesale household prices will start at $40 or less per month for an entry level product and $60 per month for a 100 Megabit product. There were no connection charges for households.

NZPA

Comments from our readers

On 24 May 2011 at 10:42 am bc said:

This whole exercise will be useless if Pacific Fibre don't succeed. Most content is sourced from offshore and our capacity in that department is pathetic. Remember that ad with the water traveling through straws? That's what our connection to the rest of the world virtually is once UFB increases the loading.