Budget 2023 could reveal funding for a rural fibre extension. Photo / Alan Gibson
Budget 2023 could reveal funding for a rural fibre extension. Photo / Alan Gibson
Chorus wants UFB fibre expanded to cover 90 per cent of homes - which it says would bring another 75,000 homes into the fold and improve rural broadband.
The UFB network operator says the expansion would cost $500 million, which it would cover - but that it would require theGovernment to chip in to lift that to 95 per cent.
MBIE’s Lifting Connectivity in Aotearoa New Zealand strategy document, released in December, leaned in the same direction.
“The government will support or encourage the extension of fibre, including backhaul, to improve network performance and resilience in areas where the commercial viability of fibre backhaul to support various access modes is the best long-term solution but is not commercially viable for the private sector to provide on its own,” MBIE said.
Budget 2023 could reveal funding for a rural fibre extension, but immediate expectations aren’t high for the estimated half-billion-dollar project.
“We would be willing to contribute this investment towards extending our fibre network in an environment that supports long-term investment,” JB Rousselot told the Tuanz Rural Connectivity Symposium in Christchurch yesterday, without specifying an amount.
“With the right partnerships between industry, government, and consumers, we believe New Zealand can and should aim to go further than 90 per cent fibre coverage,” Rousselot said.
Chorus chief executive JB Rousselot. Photo / Michael Craig
“We think New Zealand should have an aspiration to reach 95 per cent coverage and unlock some of the estimated $16.5b of economic benefits from rural access to very high-speed networking.”
This morning, a Chorus spokesman said the company has “ongoing conversations” with MBIE over fibre backhaul and fibre-to-the-premise expansion.
The Chorus boss also flagged his company’s intention to retire the copper network within the next 10 years and become an all-fibre company.
The new regulator regime allows Chorus to switch off copper in areas where UFB fibre or an equivalent service is available, under a series of consumer protections policed by the Commerce Commission.
Crown spending on public-private broadband and mobile initiatives since 2010. Source / Crown Infrastructure Partners, MBIE's Lifting Connectivity in Aotearoa New Zealand report, Dec 2022.
Earlier this month, the Government confirmed that Spark, One and 2degrees will be directly allocated 5G spectrum, rather than having to bid for it at a Crown auction. As a quid pro quo, each telco will spend $24m on expanding mobile and fixed-wireless broadband in regional and rural areas between now and 2025.
MBIE is also fielding applications for the $15m Remote Users Scheme, closing in June, which provides a subsidy of up to $2000 to connect a remote rural property to a broadband service such as Starlink.
Chorus saw its net profit fall to $9m for the six months to December 30, 2022, from a year-ago $42m.
Revenue was up 4 per cent to $487m.
A final dividend of 25.5 cents per share is expected to be announced in August to meet its guidance of a 42.5 cps dividend for the full year.
