Broadband investment proposal released

The government is seeking feedback on its proposed model for investment in ultra-fast broadband.

The investment model is intended to deliver on the government’s commitment of ultra-fast broadband to 75% of New Zealanders where they live, work and study over the next 10 years.

The government is proposing to establish a Crown-owned investment company (“Crown Fibre Investment Co” or CFIC) to drive its investment.

Under the proposal, CFIC would invest alongside private sector co-investors in regional fibre companies that would deploy and provide access to fibre optic network infrastructure in the 25 towns and cities covered by the initiative.

CFIC would operate a 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.

The open infrastructure model is intended to ensure all telecommunications companies have the option of using the fibre.

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.

Submissions close on 27 April. For the Cabinet paper and associated documents, see www.med.govt.nz/broadband