Giant leap for internet comes with a fair price

Photo / Thinkstock

A world of one-minute film downloads and "virtual" trips to the hospital came a step closer yesterday after the builder of New Zealand's ultra-fast broadband network was announced.

Technology experts say the giant leap in internet services will not cost the public any more than current rates.

Telecom won the tender to build the bulk of the fibre-optic system, the opportunities of which are vast according to Science Media Centre manager Peter Griffin.

Ultra-fast broadband promises to bring internet speeds of up to 100 megabits per second - about 20 times faster than those currently available - to 75 per cent of New Zealanders by 2019. Work on the project will begin immediately and the Government said it would reach 90 per cent of businesses, schools and hospitals by 2015.

Wholesale rates of $37.50 a month for 30 megabits per second and $55 for 100 megabits per second were unveiled yesterday. Households will not be charged connection fees.

Mr Griffin said the amount broadband retailers charged for data would be added onto the wholesale rates.

"Each internet provider will decide what they want to charge but I don't expect it to be very different to what a broadband and phone package costs now," he said.

"I don't think the driver of this [scheme] is cheaper broadband - it's better-quality broadband."

Scott Bartlett, chief executive of internet service provider Orcon, said in March that users of the new network should expect to pay around $100 a month for faster broadband or $70 for entry level access at 30 megabits per second. Slingshot has said it plans to offer basic phone services and internet access at 30 megabits per second for around $70 a month.

Mr Griffin said other opportunities ultra-fast broadband could provide included remote learning in schools and cloud storage - a service allowing internet users to store digital content outside their home and have it delivered via the fibre network.

Internet access at 100 megabits per second could download gigabytes of information in minutes.

But IDC telecommunications analyst Rosalie Nelson said the biggest question hanging over the scheme was how great public demand for the network would actually be. The investment was being made ahead of demand, she said, as most New Zealanders did not require such fast internet.

And she said the supercharged network would be of little use in homes if existing technology such as computers and wiring was out of date.

A Telecom survey of 200 Christchurch homes last year found 70 per cent of homeowners could improve their broadband speeds by addressing issues such as wiring.