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Hot Topic Scrutiny Week
Hot Topic Scrutiny Week
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Dreams are free: Fed Farmers calls for uncapped rural broadband, $30 wholesale price

Federated Farmers' short-lived phone company venture - Fedztel - may not have got past the first round of the government's rural broadband tender.

NBR staff
Wed, 08 Dec 2010

Federated Farmers' short-lived phone company venture - Fedztel - may not have got past the first round of the government's rural broadband tender.

But that didn't stop group's ever-optimistic telecommunications spokesman, Donald Aubrey, from weighing in today as the shortlist was announced.

Given that $300 million is being put into the six-year project ($48 million from the government, the balance from an annual levy on phone companies), Federated Farmers expects a wholesale cost of $30 a connection a month.

That is, $10 cheaper than the wholesale rate anticipated for urban customers under the $1.35 billion ultrafast broadband project.

The retail cost should be around $60 to "facilitate uptake."

And, oh, Fed Farmers would like there to be no monthly data cap. 

"We don’t like data caps. They should only be used where there is a proven technical requirement to manage performance," the company said in a statement.

Good luck with that one.

New Zealand is one of the few countries where monthly internet use is subject to data limits. All-you-can-eat plans are the norm in most countries (and Aussies can now subscribe to stonking one terabyte plans through Optus or iiNet).

And, historically, data caps have been pushing for rural users on satellite broadband.

Hopefully, the rural broadband initiative, and the ultrafast broadband initiative in towns, will see caps raised (mention of data limits was conspicuously absent from the Crown Fibre contract announcements and indicative wholesale pricing earlier this week, although caps will surely weigh heavily on plans, and possible extra costs).

But for data caps to be eliminated altogether may be wishful thinking.

And provoke a little civil war if cockies get it before townies.

NBR staff
Wed, 08 Dec 2010
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Dreams are free: Fed Farmers calls for uncapped rural broadband, $30 wholesale price
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