Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Extending New Zealand's fibre network

Last week engineers completed the first UFB stage. The so-called UFB1 fibre network reaches three quarters of the country.

UFB2 will stretch that to around 87 percent. We can take fibre further, but that needs taxpayer money. A lot of it.

When New Zealand built its copper telephone network, government saw it as a nation-building exercise. Copper phone wires reached almost everywhere.

The number you often see quoted is that it reached 99 percent of the country. It could have been one or two percent less. That's not the point.

Copper went everywhere


What's important is that it felt as if copper reached every part of New Zealand. Perception is important.

There's no technical reason the fibre network couldn't do the same. The arguments against running fibre everywhere are economic. A nationwide fibre network is expensive.

Yes, it was expensive laying copper to outlying settlements and buildings. We did that at a time when there was less money around.

State-owned monopoly


We also did it at a time the telecommunications network was a government owned monopoly.

The copper network was built as a public service, not a profit making business. Laying copper to the nation's furthest reaches and maintaining the network created good-paying jobs for workers in regional New Zealand. That would have been a consideration. We rarely hear that argument today.

In a sense it was still about getting the maximum return on the investment, but not in the way modern companies measure investments and returns. There was a social component.

How far can we go with fibre?


We're not about to go back to a state-owned telecommunications monopoly1. But there is still a social component to network building. So how far can we go given today's conditions?

The easy answer is somewhere between the 87 percent already earmarked and the 99 percent the copper network achieved. It won't be 99 percent, it will be more than 87 percent.

If pushed I'd say a little over 90 percent in the next five years with further add-ons later. But that depends on many moving parts. It also depends on technology not changing, which experience says is a mug's bet.

Brutal economics


Many forces drive network extension decision making. The most brutal economic fact is that the further you go, the more it costs to add each extra address to the network.

By the time you get to the last few percent the cost is way higher than can be justified by an investor looking for a rational economic return. At least as things stand today.

A nation building government could find the money.

The good news is that fibre uptake is much higher than anticipated at the start of the UFB project. It's already close to 60 percent and will climb well beyond that number.

This means investing money connecting what were once marginal addresses is now more likely to pay off.

There will be places not included in the 87 percent covered by UFB1 and UFB2 where connection makes sound economic sense.

Politics of fibre


Another force pushing the number higher is political. People in rural areas see people in towns getting Netflix and high quality streaming Rugby pictures. Their kids want to play Xbox games.

People want fibre and may pressure politicians to deliver. Never underestimate rural New Zealand's ability to lobby government.

By now the people connected to fixed wireless broadband on the RBI network know they have second rate broadband. It will take a long time for their service to improve, if ever. There are stories of capacity problems.

Not everyone who wants a wireless connection can get one. It is unlikely rural fixed wireless will ever match fibre. That's more pressure.

One way or another government needs to subsidise further network extension. So the answer to the how far will the network goes question is a matter of the willingness of governments and taxpayers to put people in rural New Zealand on an equal digital footing.

Before you ask how far will fibre go, ask yourself how much you are willing to pay?



  1. Discuss this by all means. Even if you think it is desirable, it's unlikely.


Extending New Zealand's fibre network was first posted at billbennett.co.nz.

© Scoop Media

 
 
 
Top Scoops Headlines

 


Keith Rankin: Our Neanderthal Ancestry

After my partner read Dan Salmon's novel Neands – written during lockdown in 2020 – I decided to renew my interest in our distant ancestry, in part with a concern that homo neanderthalensis has been unable to shake off, so far, its unflattering reputation in popular culture... More>>

Ian Powell: Rescuing Simpson From Simpson

(Originally published at The Democracy Project ) Will the health reforms proposed for the Labour Government make the system better or worse? Health commentator Ian Powell (formerly the Executive Director of the Association of Salaried Medical ... More>>

Missions To Mars: Mapping, Probing And Plundering The Red Planet

In the first month of 2020, Forbes was all excitement about fresh opportunities for plunder and conquest. Titled “2020: The Year We Will Conquer Mars”, the contribution by astrophysicist Paul M. Sutter was less interested in the physics than the conquest. ... More>>

Binoy Kampmark: Brawling Over Vaccines: Export Bans And The EU’s Bungled Rollout
The European Union has been keeping up appearances in encouraging the equitable distribution of vaccines to combat SARS-CoV-2 and its disease, COVID-19. Numerous statements speak to the need to back the COVAX scheme, to ensure equity and that no one state misses out... More>>

Jennifer S. Hunt: Trump Evades Conviction Again As Republicans Opt For Self-Preservation

By Jennifer S. Hunt Lecturer in Security Studies, Australian National University Twice-impeached former US President Donald Trump has evaded conviction once more. On the fourth day of the impeachment trial, the Senate verdict is in . Voting guilty: ... More>>

Binoy Kampmark: Let The Investigation Begin: The International Criminal Court, Israel And The Palestinian Territories

International tribunals tend to be praised, in principle, by those they avoid investigating. Once interest shifts to those parties, such bodies become the subject of accusations: bias, politicisation, crude arbitrariness. The United States, whose legal and political ... More>>