Govt’s $1.5b a welcome addition to industry's $10b

TIG Media Release
16 September 2009

Government’s $1.5 billion a welcome addition to industry’s $10 billion

In the last decade Telecommunications Industry Group (TIG) members have invested over $10 Billion in New Zealand’s telecommunications infrastructure, and this pro-investment group is planning to invest a further $10 Billion over the next ten years.

The TIG fully supports the $1.5 Billion that the Government’s ultrafast broadband (UFB) initiative will add to the industry’s ongoing investments.

“As an industry group our interests are not focused on who builds the broadband infrastructure in partnership with the Government, but on ensuring that what is built delivers high value to New Zealand, that infrastructure investment is efficient and that it provides the right end-user service experience,” explains TIG CEO, Rob Spray.

Towards this end the TIG is focused on ensuring:

1 What is built inter-operates efficiently with existing networks

2 Investments are made in the most appropriate locations

3 The regulatory environment supports rather than hinders the initiative

4 As much of the investment as possible goes into network build and is not indirectly taxed, or lost through excessive compliance costs. These can be a very significant part of the business case.

5 That the most appropriate technology is used for each situation, fibre, copper, wireless and satellite.

The recent investment increase of $300 million into rural NZ is welcomed as a step towards assisting the industry build broadband services in this key sector. “We support the use of all access technologies, particularly in the rural sector with the most efficient and effective technology being selected for each group of customers,” says Rob Spray. “Building fibre based broadband to 75% of New Zealand will require an investment in the region of $6 Billion. For the initiative to succeed, the industry will be funding $4.5 Billion of this. Clear commercial investment principles and an avoidance, wherever possible, of excessive overbuild will be essential to ensuring the scale of private investment necessary.”

The TIG welcomes the Government’s view that local government needs to be engaged and supportive for the UFB Initiative to succeed. The TIG believes that a pro investment Local Government position is critical to ensuring efficient infrastructure build, and the TIG will work with both Central and Local Government to achieve this. “Local Government is a key part of the equation, but Government also needs to encourage other authorities, including Transport, DOC and all entities with Crown Land to support the initiative as well” says Spray.

ENDS

© Scoop Media