Broadband plan 'lags behind world'

Photo / Rotorua Daily Post

The Government's plans for fast internet lag behind broadband initiatives in Europe, Asia and Australia, according to a global report.

Negotiations are under way to decide who will build the Government's fibre network, which hopes to provide browsing and download speeds upwards of 100 megabits per second - more than 10 times faster than current rates.

Successful applicants will join with the Government to lay fibre cables throughout 75 per cent of the country over the next 10 years.

But a London research group ranks New Zealand's fibre scheme behind 10 other proposed broadband builds.

The Economist Intelligence Unit compared global broadband rollouts, measuring projected speeds, coverage, market competition and the level that internet investment would strain other public funds. It also looked at how long it would take for fibre to be rolled out.

Using this data, it ranked countries against each other, with New Zealand coming in 10th, behind countries such as Sweden, Estonia, France, Japan, South Korea and one place below Australia.

The cost of the broadband scheme to New Zealand taxpayers (per household connected) is about 30 per cent less than across the Ditch, with the New Zealand Government planning to spend 2.2 per cent of annual revenue on ultra-fast broadband compared to Australia's 7.6 per cent.

New Zealand came in ahead of the United Kingdom and Germany, with its goal of offering speeds of 100 megabits per second on par with France, Sweden and Estonia.

This is still leagues behind the report's top three nations Japan, South Korea and Singapore, who are aiming for speeds of 1000 megabits per second.

It was the penetration of broadband where New Zealand scored poorly, and plans to extend fibre to 75 per cent of the country are well below Australia's target of 93 per cent and South Korea's 95 per cent.

The Herald understands the report focused only on the Government ultra-fast broadband network rather than its rural broadband initiative, which are separate schemes.

However, since the rural plan offers speeds far lower than the ultra-fast network, the inclusion of it would not improve New Zealand's ranking.

IDC telecommunications analyst Rosalie Nelson does not believe the report will change the Government's course. "There is little likelihood that this or indeed any other critique will lead to a rethink of the approach or process - we are too far down the line right now and too close to an election," Nelson said.

"The Government's approach to broadband investment is highly complex and fragmented, and as a result it comes with significant risks, particularly as our model is unprecedented internationally. We are entering uncharted waters."

WHERE WE STAND

The Economist Intelligence Unit's ranking of proposed broadband builds:

1: South Korea

2: Japan

3: Singapore

4= Sweden

4= Finland

5: Estonia

6: France

7: Spain

8: Denmark

9: Australia

10= New Zealand

10= USA

11: Italy

12: United Kingdom

13: Germany

14: Greece