Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Telecom asks for break on rural broadband pricing

Telecom asks for break on rural broadband pricing

by Paul McBeth

March 29 (BusinessDesk) – Telecom Corp., which is fighting to win a chunk of government funding to build a national broadband network, has asked for a break on its regulatory burden over the delivery of rural internet.

Communications Minister Steven Joyce is seeking submissions on whether the country’s biggest phone company should be allowed to charge more for services delivered by the government’s rural broadband initiative (RBU) than the subsidised deal for schools and hospitals.

Telecom wants to ensure any fibre services that are technically the same or similar to what it would be required to offer under the RBI wouldn’t have to be offered on the same terms as those subsidised by the government.

The government’s rural plan aims to give 80% of rural households internet speeds at least 5 megabits a second, with the remainder getting 1 Mbps.

The government will put in some $50 million of funding towards the build, with the remainder coming through a contestable levy on telecommunication service providers that’s replacing the old agreement with Telecom to provide phone services to remote places.

Community hubs, schools and hospitals are expected to get fibre enabling broadband speeds of at least 100 mbps.

Telecom and mobile phone rival Vodafone New Zealand Ltd. are negotiating with the Ministry of Economic Development in a joint bid to win the right to deliver high-speed internet services over what would be a combination of mobile broadband, fixed wireless and enhanced copper services.

Joyce is asking for submissions on the variation request until April 5. Shares in Telecom rose 1.8% to $2.02 in trading today, and have dropped 9.5% this year.

(BusinessDesk) 15:01:52

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Building Battle: Bill English Blames Council On Housing

The Nation: Finance Minister blames Auckland Council for housing shortage, saying it is responsible for land, housing and infrastructure supply in the city, while government provides rental subsidies... More>>

ALSO:

Megiaglommeration: NZME And Fairfax Apply For Authorisation To Merge

The Commerce Commission has received an application from Wilson and Horton Limited (trading as NZME) and Fairfax NZ Limited seeking authorisation to merge their media operations in New Zealand. More>>

ALSO:

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news