Gearing up for fast fibre details

Steven Joyce

Electricity lines companies are confident a slice of $1.5 billion of Government money will head their way as further details of a taxpayer-funded broadband spend-up are released this week.

The Government plan to boost broadband speeds to 100 megabits per second - more than 50 times faster than speeds available today - by laying fibre to the home was a cornerstone of National's election campaign.

A spokesperson for Communications and Information Technology Minister Steven Joyce confirmed details of how the Government would progress with building a fibre-to-the-home network are to be made public this week.

The Government has been clear any investment would be in open-access dark fibre, meaning companies are given equal access to the network, which does not line the pockets of existing broadband network providers.

New Zealand's largest lines and infrastructure network, Vector, has made clear its ambitions to extend its fibre network.

In Auckland, it has 500km of fibre optic network laid in the city's business districts and is expanding that network by an extra 300km as part of an agreement with Vodafone.

Earlier this month Joyce said the Government would release a draft plan of how it would make the investment, followed by a short period for industry comment.

Joyce expects the first fibre to be laid before year end.

Telcos and network operators with a vested interest have been vigorously lobbying the minister.

A report commissioned by industry heavyweights Telecom, Vodafone and TelstraClear said their own investment plans would deliver broadband speeds adequate for the needs of everyday internet users without the need for a boost from the Government.

Consulting firm Castalia challenged the belief that high broadband speeds for households - up to 50 times faster than what is presently available - would deliver significant economic benefits.