UFB prospects on the skids?

The likelihood of ultrafast broadband delivering new services and opportunities to Kiwis anytime soon has become much less likely following today’s news that a second international fibre cable won’t proceed, says Labour’s Communications and IT Spokesperson Clare Curran.

“The Government promised New Zealanders a step change to the economy through fast broadband in their homes, schools and businesses and a super information highway.

“But its $1.5 billion flagship programme was always dependent on a second high-speed fibre-optic cable connecting New Zealand to Australia and California and providing much-needed competition to bring fibre prices down. By expecting the market to deliver a second cable, the Government has gambled and lost given today’s announcement.”

Clare Curran says Pacific Fibre tried hard to get the project off the ground.

“Its failure is a blow to local industry, it’s a blow to the Government’s UFB project and it’s ultimately a blow to the Kiwi consumer and business community wanting to take advantage of new technology.

“The Government could have been playing closer attention and should have factored into its business model the need for greater international interconnectivity. The question is, what will they do now to ensure their UFB programme doesn’t continue to flounder?

“New Zealand’s only existing international cable was not allowing the pricing needed to act as an incentive to our market to invest in retail products to stimulate high uptake of new broadband as it becomes available.

“To date the only real recipient from the UFB has been a wealth transfer to Telecom and Chorus shareholders. New Zealanders won’t be seeing any benefits anytime soon,” said Clare Curran.