In a bold counterproposal to the government, Telecom’s Crown fibre submission suggests abandoning Steven Joyce's vision of 25 local fibre companies in favour of one of two options. Both involve the telco’s Chorus division taking charge of a single, national roll-out on an  accelerated schedule.

The 25 local fibre companies could pursue a fragmented technology strategies, Telecom says and have the potential to fail, concentrating investment in a few areas.

Retail telcos will be barred from owning more than 50% of one of the government’s proposed 25 Local Fibre Companies (LFCs), the public-private companies that would bring fibre-to-the-premises under Steve Joyce’s $1.5 billion broadband plan.

“Retail telcos cannot be a majority partner in an LFC ,” says Forsyth Barr senior analyst Guy Hallwright, “so that is going to act as a significant constraint on Telecom’s plans”.

Get ready for Her Majesty's broadband. The Crown Fibre Investment Co (CFIC), proposed by the government this morning as the vehicle to drive its $1.5 billion in spending on fibre, would hold “A shares” for 10 years in each of up to 25 local fibre companies, and each private partner "B shares".