Positive response to Govt rural broadband proposal
Communications and Information Technology Minister Steven Joyce says the government has received a strong and positive response to its proposals to deploy fast broadband to rural communities.
The government's rural broadband targets are that:
93% of rural schools will receive fibre, enabling speeds of at least 100Mbps, with the remaining 7% to achieve speeds of at least 10Mbps.
Over 80% of rural households will have access to broadband with speeds of at least 5Mbps, with the remainder to achieve speeds of at least 1Mbps.
Mr Joyce says the government is proposing to fund the rural initiative through a combination of direct government funding and revenue from a more transparent and effective industry levy than the current TSO levy.
A total of 67 submissions were received on the rural broadband proposal and 23 on the TSO reform proposal.
Mr Joyce says the submissions give the government a clear mandate to move quickly to improve the state of rural broadband.
"It is now time to focus on developing the proposals to ensure the $300 million earmarked for rural broadband is spent in a manner that achieves the best possible outcome for rural New Zealand.
"I am pleased with the large number of submissions on these two proposals, which demonstrates the significance of the decisions before the government. I expect to announce the government's final policies on rural broadband and TSO reform in early 2010."
The submissions are now available on the Ministry of Economic Development website at www.med.govt.nz/rural-broadband and www.med.govt.nz/tso.
Questions and Answers
How will the government ensure that rural communities benefit from the proposals?
The delivery of fast broadband services to rural households and enterprises is a high priority. The government is currently considering the submissions on this issue and will ensure that rural communities benefit significantly from the rural broadband initiative.
Open access requirements will be included in any tender process for selecting providers under the rural broadband initiative, and bidders will be required to provide detail regarding how they intend meeting or contributing to the government's community broadband targets.
What will the government do to promote affordability and uptake of broadband services in rural areas?
The provision of grants through the rural broadband initiative is expected to significantly improve the business case for the delivery of affordable broadband services in rural areas.
There is an important role for local communities, local organisations (including local government), rural organisations (such as Federated Farmers) and user representatives to play in promoting the uptake of rural broadband services and aggregating demand to improve the business case for rural broadband deployment.
What is the government doing to ensure that schools are "fibre-ready" and able to afford ultra-fast broadband services?
$150 million has been signalled to make more schools broadband-ready, including upgrading schools' internal networks. As part of the government's initial $34 million boost for broadband in schools, fourteen schools, including two area schools, are to receive major upgrades prior to the end of this year. The next group of around 100 schools will be targeted for upgrades in early 2010, with more to be announced over the course of the year.
As much as possible, the school network upgrades will be co-ordinated with the roll-out of fibre to rural schools. A Ministry of Education subsidy for the drop cost (connecting fibre from the school gate to school buildings) is also available to help schools meet the cost of connecting to fibre.
The national education network (NEN) trial will be extended until June 2011 and expanded to include more schools. The NEN trial will be a cost-effective way for schools to access high speed connectivity. The Ministry of Education is also preparing a business case for an education network which could potentially incorporate all schools.
Does the government have a preference for the technology used to deliver broadband services to rural communities?
No. The government will assess any proposals to deliver fast broadband services to rural communities on their relative merits in terms of (for example) service quality, cost, and ability to provide higher speed services over time.
Why are the broadband speed objectives for rural slower than for urban?
Roughly 50% of rural people only have access to dial-up internet speeds, therefore the first step is to get fast broadband services into rural New Zealand that model the much faster speeds that are already available in most urban centres. Putting the necessary infrastructure in place to provide fast rural broadband services will act as a stepping stone for the delivery of more advanced services over time.
The use of broadband access technologies that can provide ultra-fast broadband services in rural areas is not precluded by the proposed rural broadband initiative. Providers will be able to access government-subsidised backhaul to deliver rural broadband services capable of varying speeds using a range of technologies, including Fibre-to-the-Premise.
Schools will have one of the highest concentrations of use in rural areas and as a result of the government's Rural Broadband Initiative 97% of all schools serving 99.7% of all students will have access to ultra-fast broadband.
When will the "digital dividend" spectrum be available for use in delivering high speed wireless broadband services in rural areas?
Government decisions are yet to be made on the timing of both the Digital Switchover process and the subsequent allocation of spectrum (the digital dividend). It is currently anticipated, however, that both these actions will occur in the 2013 to 2015 period.
Will the government require community access points to be located at schools?
No decisions have been made regarding the specific location of access points for the delivery of broadband services to rural communities under the rural broadband initiative. It is likely that this will be determined on a case-by-case basis, taking into account the particular circumstances of the communities involved. It is however recognised that there are specified requirements for wireless transmitters to be located away from school premises.
Will any legislation enabling the proposed amendments to the TSO Charging Methodology be retrospective?
No.
Has the government already determined what amendments, if any, will be made to the definition of "liable persons"?
No. The government has not yet determined the definition of "liable persons" that will be appropriate going forward. Affected parties will be consulted on any proposed changes to the definition.