Hon Steven Joyce
Minister for Communications and Information Technology
March 31 2009
Media Statement
Govt releases broadband investment proposal
Communications and Information Technology Minister Steven Joyce is seeking feedback on the government’s proposed model
for investment in ultra fast broadband.
Mr Joyce says once finalised, the investment model will deliver on the government’s commitment of ultra fast broadband
to 75% of New Zealanders where they live, work and study over the next ten years.
The government is proposing to establish a Crown-owned investment company (“Crown Fibre Investment Co” or CFIC) to drive
the government’s investment.
Under the proposal, CFIC will invest alongside private sector co-investors in regional fibre companies that will deploy
and provide access to fibre optic network infrastructure in the 25 towns and cities covered by the initiative
CFIC will operate an open, transparent and contestable process to select local partners with selection based on:
· The amount of additional fibre coverage being proposed
· The proposed capital structure
· Commercial viability of the proposal
· Consistency with government objectives
· Track-record of the partner
Mr Joyce says the open infrastructure model will ensure all telecommunications companies have the option of using the
fibre.
“This model aims to provide government investment on favourable terms, while minimising government involvement in
commercial operations which we believe the private sector is better positioned to direct.”
The government has committed up to $1.5 billion for the roll out and expects that to be at least matched by private
sector investment.
“This is a big investment both in terms of the money committed and the returns it will bring. It’s essential that we
get it right the first time.”
“The government now looks forward to receiving submissions from interested parties,” says My Joyce.
Interested parties have until April 27 to make submissions.
ENDS