Proposals in for broadband initiative

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Crown Fibre Holdings (CFH) has received 15 refined proposals for the Government's Ultra-Fast Broadband initiative.

CFH, the state-owned company managing the $1.5 billion-scheme, said proposals received cover all 33 candidate areas targeting 75 per cent of New Zealand's population and some respondents have formed new consortia or indicated a willingness to do so.

Telecom yesterday announced it submitted its plan affirming its structure separation, through a demerger into two companies, which would give rise to Chorus2 as a new and entirely standalone company.

Other bidders include Vector and Vodafone, partnering with Canadian fibre company Axia.

CFH began seeking proposals in October 2009, and completed its eligibility stage in March. In July it asked respondents to redefine their proposals.

Crown Fibre Holdings chairman Simon Allen said with the latest stage now complete, it would determine a shortlist, and make recommendations on preferred investment partners in October.

CFH expects to start the initiative before the end of the year.

Communications and Information Technology Minister Steven Joyce welcomed the announcement.

"Obviously Telecom have gone public with what they are proposing and I'm sure the other bidders will have their best foot forward."

He said the initiative was "essential infrastructure of a productive and growing economy and will be crucial to New Zealand improving its competitive advantage in the global market.

"The future of broadband is in fibre, and taking it right in to the home will bring significant gains for productivity, innovation and global reach. We are one step closer to realising those benefits today."

- NZPA