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Telecom says time running out for broadband decision

Tuesday 7th December 2010 3 Comments

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Telecom says time is running out for state-owned Crown Fibre Holdings (CFH) to choose partners to deliver the Government's ultra fast broadband (UFB) initiative.

Communications and Information Technology Minister Steven Joyce announced today the first areas to be part of the initiative.

That was after CFH concluded negotiations with two partner companies, Northpower and Ultra Fast Fibre, for Whangarei, Hamilton, Cambridge, Te Awamutu, Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa.

Telecom chief executive Paul Reynolds said today's announcement confirmed Crown Fibre Holding's previously indicated intention in those areas, and Telecom's proposal was focused on the remainder of the country.

"We continue to engage in the process being run by CFH to determine the successful partners for the rest of the country, however time is running out and we are conscious that our shareholders need resolution," Dr Reynolds said.

Structurally separating Telecom's Chorus unit as the cornerstone of a national framework for fibre was the most efficient and effective way to deliver the Government's fibre vision and that was reflected in the Telecom proposal.

"We are also open to partnership with other public and private sector owners of fibre assets, including the parties selected as CFH's partners, where partnership can improve the overall economics of a national solution to deliver fibre further and faster for New Zealand," he said.

CFH was set up to manage the Government's $1.5 billion investment in UFB infrastructure, with the objective being to have UFB rolled out to 75 percent of New Zealanders in 10 years.



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Comments from our readers

On 7 December 2010 at 5:36 pm Christopher said:
Other than starting small and building up, it's hard to rationalise the process leaders being lesser populated areas. I hope Telecom has a Plan B to go it alone with Chorus intact because successive governments seem hell bent on getting the company to it's knees.
On 7 December 2010 at 9:22 pm Brownie said:
The government floated Telecom off to the public and yet still wants to run it. Seems like we have been set up to loose our investment just like in Finance Companies.
On 8 December 2010 at 10:42 am garry ince said:
What has Telecom done for the goverment to drive it to its knees,it is the obvious choice for broadband,if it misses out I hope it goes it alone, especialy in our biggest city Auckland.
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