Govt puts out invite to broadband partners

Wednesday 21st October 2009

The government has released its invitation to participate for partners in the roll-out of the $1.5 billion national broadband initiative and has reiterated its requirement that Telecom Corp. will have to divest the majority ownership of its Chorus network division.

The full paper, on the Ministry of Economic Development website, outlines the terms and conditions of the government’s partnership process, and what is required of tender bids. While companies can make bids that fall outside these terms, Crown Fibre Holdings is not under any obligation to consider them.

In the question and answer section of Communications Minister Steven Joyce’s press release, he repeated that while any structural separation is up to Telecom, the government will only invest in companies that aren’t controlled by shareholders who operate retail telecommunications businesses as well.

Last month, Joyce announced his finalised proposal for the government’s investment, in which the government plans to set up the Crown Fibre Agency to partner with industry laying fibre throughout 75% of the country over the next decade.

“The ITP (Invitation to Participate) is based upon an innovative commercial model that will see the government largely fund the deployment of fibre into the communities,” Joyce said in a statement. “This risk sharing model overcomes the major hurdle of uncertain demand.”

Interested parties have until November 13 to state their intention, with proposals lodged by Jan. 29. Shares in the country’s largest listed phone company gained 1.6% to $2.57 on the exchange yesterday.

Businesswire.co.nz

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