Tensions over UFB costs could affect rural broadband

Tensions over UFB costs could affect rural broadband

Federated Farmers is concerned that the Commerce Commission ruling may delay the rollout of the vital Rural Broadband Initiative (RBI).

“We are watching the political stalemate over who should set the access price to the copper network in comparison to the newer fibre network closely,” says Anders Crofoot, Federated Farmers telecommunications spokesperson.

"We'd be deeply concerned if the rollout of the RBI and the UFB were delayed, it is essential for rural connectivity and regional economic development. If there is the merest hint money may be taken away from it in order to patch a shortfall from the Ultra Fast Broadband project, rural communities could lose out.

“However, we support the Commerce Commission retaining its price setting powers on this matter and welcome the way the opposition parties have united to support them. It sets a clear precedent for when these parties eventually enter government.

"The question we need to ask is whether the ruling proves to be a pyrrhic victory for taxpayers.

"The Government has signalled that it has other options, and if Chorus is financially compromised by the ruling that could well lead to taxpayer support.

"One thing is for certain the future of the internet is not copper but fibre. Whether that's point to point in town or to light up rural wireless broadband and 4G cell towers, we need to move forward with the technology" Mr Crofoot concluded.

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