Members of the New Zealand Regional Fibre Group (NZRFG), an alliance of power line companies and fibre operators, hope to deliver the government's rural broadband initiative through a mix of fixed fibre, mobile and wireless technologies.Yesterday was the
Members of the New Zealand Regional Fibre Group (NZRFG), an alliance of power line companies and fibre operators, hope to deliver the government’s rural broadband initiative through a mix of fixed fibre, mobile and wireless technologies.
Yesterday was the closing date for submitting a formal expression of interest in the government's four-year, $300 million plan to bring faster broadband to 97% of people who live in rural areas.
The initiative will be part-funded by a levy on phone companies, which will replace the old TSO (aka Kiwishare) rural levy from next year - and the likes of Telecom, Vodafone and TelstraClear are expected to bid for Crown business as well.
The three big telcos will have to keep paying the revamped rural broadband levy over the next four years at minimum to the tune of a collective $50 million a year - even if a power line company or fibre operator like FX Networks wins some or all of the government contract.
The NZRFG's recently appointed chief executive, Vaughan Baker, said members yesterday submitted coordinated RBI responses to MED.
39 submissions
Communications Minister Steven Joyce said a total of 39 submissions were received.
Nine are "substantial expressions of interest covering the entire country".
The expression-of-interest phase closed yesterday. The government will now issue a request for proposal (RFP) for its four-year rural broadband initiative (RBI), which divides the country into 19 rural zones.
The first round of funding is due to be allocated to the successful bidder(s) in October or November.
Exceeding the govt's (crummy) target
Mr Baker said the proposals, taken collectively, exceed the coverage and broadband performance objectives required by the government - not difficult given the low bar the government has set of 5Mbit/s connections for 97% of rural households.
The remaining 3% are promised a dismal 1Mbit/s (by contrast, urban areas are promised 10Mbit/s to 20Mbit/s under Chorus' roadside fibre cabinet rollout).
In the education section, the government's aim is for 93% of rural schools will receive fibre, enabling speeds of at least 100Mbit/s, with the remaining 7% to achieve speeds of at least 10Mbit/s.
The Regional Fibre Group is planning extensive coverage in the 19 zones specified by the Government, ensuring fibre is delivered to at least 94% of rural schools – with potential to connect the entire country to fibre - should NZRFG members become Local Fibre Companies through the government's separate $1.5 billion ultrafast broadband (UFB) Crown fibre initiative.
Mr Baker said 10 NZRFG members already have fibre businesses.
One is Vector, which is making its own publicity play around its rural broadband bid - although trying to downplay its central ploy of using overhead powerlines as a cheaper, faster way to get fibre to the farm.
“Our members are the leading providers of open access networks in New Zealand. Through electricity, gas and communications, we connect around 1.2 million NZ homes and businesses to the grid, so it makes sense to maximise our infrastructural experience,” said Mr Baker.
Mr Baker says this will be achieved through collaborative partnerships between NZRFG members, national and local service providers and other stakeholders – many of whom have already pledged their support to the NZRFG.
