KEY POINTS:
The Government is proposing industry-wide talks to boost telecommunications investment, but is unlikely to open its own chequebook.
In an open letter to the telco industry, Communications Minister David Cunliffe has invited key industry players to meet and discuss how to improve the environment for infrastructure investment.
"I am aware that it may be difficult to build an industry consensus on how to further incentivise infrastructure investment in some aspects of the network, particularly in light of some of the recent concerns expressed by access seekers regarding Telecom's cabinetisation plans," said Cunliffe.
"However, I would like to encourage the industry to identify areas of mutual interest where co-operation may be possible and areas where the Government may be able to usefully assist."
Cunliffe said discussions should focus on commercial solutions, saying Government funding and legislative change would be considered as options of last resort.
He said any funding available from the Government would have conditions attached, including a requirement for new networks to be open access (meaning network access is available on the same terms to any player), contestability for funding, substantial input of funding from the private sector, minimising the risk of curtailing private-sector investment and targeting areas with maximum economic spin-offs.
Cunliffe said the Government's long-term vision was for fibre-optic cable to replace copper lines delivering telecommunications services to homes and businesses.
Telecom has committed to spending an extra $303 million on increasing broadband speeds over the next four years by running fibre out to roadside cabinets.
The proposal would enable 80 per cent of New Zealand households to get broadband at speeds of at least 10 megabits per second.
Cunliffe said at the Digital Future Summit last November he would like to see investment ramped up so 10Mbps was available to 90 per cent of households, with at least 75 per cent getting speeds in excess of 20Mbps.
One option, he suggested, was that the industry look to improve investment returns by sharing infrastructure costs.
Government officials plan to meet telco representatives this month, suggesting either Warehouse founder and Growth and Innovation Advisory Board member Stephen Tindall or New Zealand Institute head David Skilling to chair the discussions.
Broad plans
What the Government wants:
* Rapid roll-out of fibre-optic cable to roadside cabinets.
* Faster roll-out of fibre to business premises.
* Improvements to rural broadband.
* Better international telecommunications connections.
