Central Fibre joins priority list for UFB

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Telecom's grip on winning the biggest slice of the government's $1.35 billion high-speed internet fund has loosened with the Central Fibre Consortium (CFC) joining the priority bidders list.

Government entity Crown Fibre Holdings added the consortium to its most-favoured bidders, putting pressure on the country's biggest phone company to improve its offer as the competition heats up.

CFC is a collection of lines companies and is bidding for 10 ultrafast broadband areas in the Central North Island.

"It is great to have Telecom and the Central Fibre Consortium contesting the opportunity to become the Crown's partner for UFB in regional cities such as Napier and Palmerston North as well as smaller centres like Whakatane and Masterton," chairman Simon Allen said in a statement.

Fibre "will make regional centres more competitive, improve our health and schooling systems, and help local businesses to connect to world markets."

The addition comes after Auckland lines company Vector joined the priority bidders last month, putting heat on Telecom which was put in the box seat for 25 candidate areas in December.

Allen said the consortium was made up of well-established lines companies that have expertise and experience in owning and operating essential infrastructure, with two of its members having existing fibre networks.

CFC is made up of Unison Networks, Counties Power Ltd, Eastland Group, Horizon Energy Distribution and Central Lines Ltd.

The priority bidders are CFC, Telecom, Vector, the Flute joint venture and Alpine Energy Ltd. Whangarei Local Fibre and Ultrafast Broadband have already secured funding and are expected to begin rolling out fibre in second quarter this year.

The final decision on UFB has been delayed by the 6.3 magnitude earthquake in Christchurch, which has killed at least 166 people and caused as much as $15 billion worth of damage, though Finance Minister Bill English said the programme was one it wants to maintain.