Fibre plan huge opportunity for New Zealand

Fibre plan huge opportunity for New Zealand
Media Release
31 March 2009

InternetNZ (Internet New Zealand Inc) congratulates the Minister of Communications Stephen Joyce and the Government for solidly following through with their pre-election commitment to a fibre-to-the-home (FTTH) network for New Zealand.

InternetNZ Executive Director Keith Davidson says the proposal announced today is very much aligned to InternetNZ’s thinking and the conclusions of the Network Strategies report commissioned by InternetNZ last year.

At the outset, the inclusive regional open access approach being adopted looks very promising, says Davidson. “InternetNZ is in agreement with the high-level principles articulated in the proposal and with the overarching requirements for open access, equivalence and interconnection standards.

“An open access network providing dark fibre and some wholesale services, and excluded from retail influence, will provide for genuine competition across the network. This will encourage multiple Internet and telecommunications companies to develop cost-effective services that will positively contribute to New Zealand’s economic and social development.”

InternetNZ welcomes the willingness to stimulate take-up of services through the public sector and particularly the health and education sectors.

“Demand-side initiatives are very important to the success of this initiative as they will encourage innovation, increase utilisation of the network, and increase the network benefits.

“Also, recognition of the special place of useful broadband in schools is a key success driver for the future.”

InternetNZ notes the Government has thoroughly investigated options and correctly identifies the benefit of point-to-point fibre infrastsructure over PON, stating a preference for point-to-point in bids.

“The marginal extra cost of providing point-to-point fibre will ensure significant benefits both in network performance and in the ability to provide unbundled services over fibre. It will be very important in avoiding potential monopoly bottlenecks,” says Davidson.

The Government has called for public submissions. InternetNZ acknowledges the devil will be in the detail and will thoroughly analyse the proposal and provide its submission.

ENDS

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