Govt announces two ultrafast broadband deals

Tuesday 7th December 2010 2 Comments

The cities of Hamilton, Tauranga, Whangarei, New Plymouth and Wanganui will be among the first to benefit from the government's rollout of ultra-fast broadband (UFB), Communications and Information Technology Minister Steven Joyce says.

Crown Fibre Holdings concluded negotiations with two partner companies, following shareholding ministers' approval of the deals over the weekend. The partners were Northpower and Ultra Fast Fibre, owned by WEL Networks.

The new companies would rollout fibre in Whangarei, Hamilton, Cambridge, Te Awamutu, Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa.

Northpower would start its roll out in Whangarei before Christmas with Ultra Fast Fibre expected to begin laying fibre early in 2011. Both companies would have completed their rollouts by 2015.

Those joint ventures represent nearly 16% of UFB premises and a combined value of more than $200 million, Mr Joyce said.

The UFB initiative aims to have 75% coverage of ultra-fast broadband across New Zealand by 2019.

Mr Joyce said the availability of ultra-fast broadband was a key part of the Government's economic growth agenda.

"The access prices CFH has negotiated will ensure the benefits of fibre are within reach of businesses as well as everyday New Zealanders."

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

Crown Fibre would shortly announce a list of parties with whom it would next elect to negotiate with in the remaining 25 UFB regions.

NZPA

Comments from our readers

On 8 December 2010 at 8:55 am Alan said:

What is CFH thinking???The new companies would rollout fibre in Whangarei, Hamilton, Cambridge, Te Awamutu, Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa. Are Auckland,Wellington & Christchurch not the Business centres for NZ where UFB is desperately needed??? Surely you need not be a Rocket Scientist to understand that!!!! I sometimes wonder why decisions such as these are made. What is the motivation behind these decisions???

On 8 December 2010 at 10:08 am Ash said:

Hi Alan, I think the main centres are the responsibility of different companies, (Telecom?) and so will depend on the speed of those companies.