Vodafone, Spark and 2degrees submit joint proposal to enhance broadband and mobile services for rural communities
Vodafone, Spark and 2degrees today announced a joint proposal to improve rural broadband and mobile infrastructure. The
three telecommunications providers have made a submission to the Government for the delivery of high speed broadband and
mobile infrastructure using the Rural Broadband Initiative Extension (RBI2) and Mobile Black Spot Fund.
If successful, the bid would see Vodafone, Spark and 2degrees invest hundreds of millions of dollars over the life of
the project, including a capital contribution of $75m to establish the infrastructure. The investment package also
includes the contribution of spectrum, ongoing operating expenditure and other resources required to deliver and run
this significant infrastructure deployment programme. This more than matches the Government’s own contribution of $150m,
via the Telecommunications Development Levy (TDL).
Vodafone Chief Executive Russell Stanners said, “Rural New Zealand is a key driver of our country’s economic growth and
productivity and for these sectors to remain competitive they need fast broadband and mobile coverage – not just in
offices, but on farms, in schools, and on the roads. The combination of the Government’s RBI funding and this investment
by the three mobile network operators presents a once in a generation opportunity to deliver both competitive ultra-fast
broadband and world class 4G mobile infrastructure to areas of New Zealand that today have neither.”
Spark Managing Director Simon Moutter said, “Fast broadband and mobile connectivity is the lifeblood of the economy so
making sure we can find a way to extend it deep into rural New Zealand is a critical task. The reality is that Spark,
Vodafone and 2degrees working together in this way provides the only economically viable way to deliver both quality
mobile and wireless broadband infrastructure to the more challenging and remote rural areas of New Zealand.”
2degrees Chief Executive Officer Stewart Sherriff said, “2degrees has a proud history of investment and innovation in
New Zealand, we are therefore very happy to be part of this proposal to address the digital inequity between urban and
rural communities. If successful this joint infrastructure investment bid will enable 2degrees to compete strongly to
provide rural households and businesses – and domestic and international tourists – with the products and services they
deserve”.
Existing mobile networks cover well over 90% of the areas where New Zealanders live and work, however there are still
remote land areas of the country without mobile coverage. The proposal would see in the order of 500 new cell sites
delivering a 25 per cent increase in land coverage across New Zealand. Thousands of rural households and businesses
would gain access to fast broadband as well as quality mobile coverage, and more than 1,200 kilometres of additional
mobile coverage along state highways. Extended coverage on state highways means the public will have better access to
emergency services, and police, fire and ambulance officers will be better equipped to coordinate operations from
isolated locations.
The tourism sector will also benefit, extending its ability to promote New Zealand to the world and allowing visitors to
more easily share their experiences with family and friends.
ENDS