Plan to get fibre rolled out to the home

Vector CEO Simon Mackenzie. Photo / Paul Estcourt

The delay in decisions on the Government's $1.5 billion broadband project is "frustrating", says Vector chief executive Simon Mackenzie, but ultimately he's happy about the way it's taking shape.

Announcements on the plan to roll out ultra-fast broadband to 75 per cent of the population over the next decade were originally due a few weeks ago, but Communications Minister Steven Joyce has put it off for a couple of months because of the "volume and complexity of the issue".

The lines company boss says ongoing delays would start compromising the objective of boosting the nation's productivity. But it's early days. "The key issue for us is we support the vision - absolutely there should be fibre to the home."

Mackenzie says the Government has acknowledged the issues Vector specifically raised in its original feedback - that it should be an open access model allowing any service provider to offer its wares to customers, not just a network for incumbent telcos.

In response to the Government's desire to have local fibre and lines companies investing in the project, Vector set up the New Zealand Regional Fibre Group. Members have worked on a co-ordinated approach to the technology and the framework for investment, and ensuring everything is overseen on a national basis.

"So someone, a service provider ... like Sky, knows when it sends a solution down to Invercargill that it actually is at the same quality as anywhere else in the country."

In terms of Vector's own business Mackenzie says the "level of regulatory uncertainty has receded".

It welcomed the passing of the Commerce Amendment Act, which makes the Commerce Commission's decision-making process more robust, he says.

He believes there remains a need for regulators to understand commercial realities, particularly the ability to refinance and the cost of debt given the banking situation.

"I think there's still a bit of a disconnect on theory versus reality."

Vector is heartened by progress towards the upgrading of Auckland's transmission infrastructure, and is awaiting "with real interest" the results of the Electricity Commission's electricity review.

"We can't underestimate, there's a huge customer sentiment out there in the market with an expectation that there will be fundamental changes."