Challenging timeframe for UFB

Challenging timeframe for UFB

Telecom has today said that it is evaluating the detail of Crown Fibre Holdings’ (CFH) announcement of a shortlist and initial negotiations for Ultra-fast Broadband.

Telecom has been shortlisted in all regions of the Ultra-fast Broadband initiative, however CFH has said it will commence initial negotiations with NorthPower (covering the Whangarei area); the Central North Island Fibre Consortium (covering Hamilton, Tauranga, Cambridge, Te Awamutu, Tokoroa, New Plymouth, Hawera and Wanganui); and Alpine Energy (covering Timaru). Telecom estimates the areas covered by these three parties represents around 12% of the population of New Zealand.

Telecom’s proposal is national, covering all UFB and Rural Broadband Initiative (RBI) areas. It is a package of profound change, including:

• co-investing with the Crown to achieve the 75% coverage objective by 2019
• splitting into two entirely separate companies (structural separation);
• integration of the RBI to extend the reach of fibre into rural areas;
• regulatory reform;
• legislative change.

“We recognise that our bid is more complicated than those of other bidders, and that Crown Fibre Holdings does not have a mandate in the areas of RBI, regulatory reform and legislative change,” said Paul Reynolds, Telecom CEO. “Telecom’s proposal includes a potential structural separation by demerger in July next year. Telecom will need appropriate engagement with the whole of government in order to meet this challenging timeframe.”

Telecom remains open to partnership with other public and private sector owners of fibre assets, including the three parties prioritised for negotiation, where partnership can improve the overall economics of a national solution to deliver fibre further and faster for New Zealand.

“Ultra-fast Broadband presents the opportunity to reshape the entire telecommunications industry to develop a world leading environment that delivers for customers, allows investment and competition to flourish and takes New Zealand forward.

“We continue to believe that a national solution is the most efficient and effective way of delivering fibre to New Zealand while avoiding duplication and waste. We stand ready to work closely with the government to make sure that we can, in the spirit of partnership, make the most of this once-in-a-generation opportunity for New Zealand,” he said.

ENDS