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Hot Topic Scrutiny Week
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Telecom: we're still in the running for Crown Fibre; open to partnerships

Telecom is still "engaging" with Crown Fibre Holdings tender, the company said in a statement.Earlier, Communications Minister Steven Joyce said the government had signed contracts with its first two ultrafast broadband partners - both lines com

NBR staff
Tue, 07 Dec 2010

Telecom is still "engaging" with Crown Fibre Holdings tender, the company said in a statement.

Earlier, Communications Minister Steven Joyce said the government had signed contracts with its first two ultrafast broadband partners - both lines companies. Northpower (Whangarei) and WEL (Hamilton, Cambridge, Te Awamutu, Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa) will cover around 16% of the population being targeted by the ultrafast broadband (UFB) project.

READ ALSO: Analysts find holes in Crown Fibre contracts announcement; take stab at retail pricing

“This announcement confirms CFH’s previously indicated intention in these areas, and Telecom’s proposal is focused on the remainder of the country,” Telecom chief executive Paul Reynolds said.

Shareholders need resolution
“We continue to engage in the process being run by CFH to determine the successful partners for the rest of the country, however time is running out and we are conscious that our shareholders need resolution," Dr Reynolds said.

Chorus still seen as cornerstone
“We are firmly of the belief that a structurally separate Chorus as the cornerstone of a national framework for fibre is the most efficient and effective way to deliver the government’s fibre vision and that is reflected in our proposal," the Telecom boss added.

Dr Reynolds also left the door open for Chorus to partner with Northpower and WEL in the regions already allocated:

“We are also open to partnership with other public and private sector owners of fibre assets, including the parties selected as CFH’s partners, where partnership can improve the overall economics of a national solution to deliver fibre further and faster for New Zealand,” he said.

However, in Northpower's case, this could be a tough sell given the lines' company's close ties with TelstraClear. The two companies have already wired several hundred homes for fibre under a pilot scheme.

Telecom shares (NZX: TEL) were down 1.38% to $2.15 in midday trading, reversing yesterday's gain.

NBR staff
Tue, 07 Dec 2010
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Telecom: we're still in the running for Crown Fibre; open to partnerships
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