Decision on broadband bid looms

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The race to decide who will build the lion's share of the Government's ultra-fast broadband scheme is drawing to a close, with an announcement expected within a fortnight.

Contracts to lay fibre cables are still up for grabs in 25 out of the 33 towns and cities included in the programme.

The two main bidders are Telecom and a series of lines companies, represented by an umbrella organisation, the New Zealand Regional Fibre Group (NZRFG).

An industry insider said yesterday that he believed the Crown's selection would be out next week and a Government official said a decision would be made "pretty shortly".

Telecom and the NZRFG both say they are confident their bids will be successful and contain attractive offerings for New Zealand.

Meanwhile, the law paving the way for the fibre build, the Telecommunications (TSO, Broadband, and Other Matters) Amendment Bill, is due to come back to Parliament from the select committee stages next Monday.

The law also outlines the process for Telecom to split its retail from its network arm, which is part of the company's UFB bid.

A spokesperson for Communications Minister Steven Joyce said the broadband contracts would need to be signed before the bill passed its second or third reading because the separation clauses would need to be dropped if Telecom was unsuccessful in the tender.

However, the finance and expenditure select committee could still report back on the bill without contracts being finalised, the spokesperson said.

The ultra fast-broadband scheme, one of National's election promises, aims to deliver internet speeds of 100 megabits per second to 75 per cent of New Zealand over the next 10 years. This is more than 20 times faster than the average urban speed recorded by the Commerce Commission last year.