UPDATED 3pm: First Telecom – previously unopposed – was joined by Vector as a second priority bidder for Auckland. Now, Crown Fibre has up-ended Telecom's priority negotiations in 10 other areas, adding Central Fibre as a rival.
UPDATE 3pm: Given Central Fibre's rather modest promise to roll-out fibre within seven years, NBR asked Telecom if it could match or beat that timetable - either in Central Fibre's 10 candidate areas, or elsewhere.
However, a Telecom spokesman offered only the lame response of:
"While I can’t go into the details of our proposal, given the confidentiality requirements of Crown Fibre Holdings' process, UFB is a programme that’s funded over nine years, so naturally some people will get fibre earlier than others within those nine years."
8.30am: Crown Fibre Holdings just slugged Telecom again.
Already, since Telecom's priority negotiations were announced in 25 of 33 Crown fibre candidate areas, the company has been joined by Vector as a second priority negotiator for Auckland.
Previously, Telecom had an unopposed run at the city.
Now, Telecom has been whacked again.
Where before today it had an unopposed run at Napier-Hastings, Palmerston North, Rotorua, Taupo, Pukekohe, Waiuku, Whakatane, Gisborne, Feilding and Masterton, it now faces competition from the Central Fibre Consortium for each of the 10 Crown fibre areas.
CFH today confirmed it has selected the Central Fibre Consortium for prioritised negotiations in the Ultra Fast Broadband (UFB) initiative.
The Central Fibre Consortium consists of Unison Networks, Counties Power, Eastland Group, Horizon Energy Distribution and Central Lines. The consortium covers the 10 towns mentioned above.
The industry will now be looking to see if CFH uses the lines company bid to squeeze Telecom on pricing – or if the region (like others) is handed to the lines company but a subsequent deal allows Telecom's spun-off Chorus networking division to join the lines company in a joint venture in a share-for-assets deal, as allowed by the Telecommunications Amendment Act now winding its way through Parliament.
The Central Fibre Consortium joins five other parties which Crown Fibre Holdings has selected for prioritised negotiations. They are:
CFH chairman Simon Allen said that the Central Fibre Consortium consists of well-established regional electricity lines companies which have expertise and experience in owning and operating essential infrastructure.
Two companies in the consortium – Counties Power and Unison Networks – already have existing fibre optic networks.
“Fibre to the premise will not only enhance the way we do things in major urban areas, but also in smaller population centres. It will make regional centres more competitive, improve our health and schooling systems, and help local businesses to connect to world markets.”
“It is great to have Telecom and the Central Fibre Consortium contesting the opportunity to become the Crown’s partner for UFB in regional cities such as Napier and Palmerston North as well as smaller centres like Whakatane and Masterton,” said Mr Allen.
The remaining shortlisted parties will also continue in the partner selection process.
Seven-year promise
Unison group chief executive Ken Sutherland today said that Central Fibre's proposal to the government is to deliver fibre to the door of all urban areas in our network regions including Hawke’s Bay, Taupo and Rotorua within a so-so seven years.
“Central Fibre’s members can build a world-class fibre network quickly with UnisonFibre extending their multiple cities deployment and Counties Power expanding the fibre build that they commenced in 2003. We are ready to start as soon as these negotiations are concluded,” Mr Sutherland said.
Telecom shares were down (NZX: TEL) were down 1.86% to $2.10 in early afternoon trading.
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