Telecom and Fonterra sign broadband deal

Telecom Corp and Fonterra said today they had reached a broad agreement on rolling out broadband - high speed internet access - for 17,000 dairy farmers.

The rollout will be launched on November 1 and aims to allow availability to all farmers within about 18 months of that date, the companies said in a statement.

The agreement is with Fonterra subsidiary Fencepost.com Ltd.

Fonterra director for shareholder services, Barry O'Donnell said the company had been attempting for some time to bring better telecommunications to dairy farmers.

"We recognise the importance and potential of online applications for improving communications and interaction with our suppliers and we're pleased that Telecom has joined us in seeing the potential of this initiative and bringing it to our farmers."

He called it a break-through in terms of "e-farming".

Telecom manager of corporate sales Mark O'Donnell said details were still being finalised but Fonterra's farmers would have:

* High-speed, secure access to Fonterra information and to the internet

* internet services, such as email, email anti-virus protection, content screening services and other tools

* Special web based applications on Fencepost.com, where all Fonterra suppliers can monitor and enhance farm production

* Technical and user support via a designated help line

* Discounted national and home to Telecom mobile phone calling

* A free "Calling Circle" of up to 9 other Fonterra suppliers on the package plus the Fonterra call centre.

Installation costs for the service will depend on the type of technology employed - wire, wireless or satellite. Monthly rental for the package will probably cost suppliers between about $60 and $100 plus gst per month, Mr O'Donnell said.

It is anticipated about 35 per cent of the Fonterra farmers will be able to access the Telecom service using existing copper wire networks, while about half will have access via BCL's wireless broadband service, and 15 per cent will be covered by satellite.

"Broadband coverage will almost always end lengthy log-on and log-off delays and interference from electric fences," Mr O'Donnell said.

'He said over 70 per cent of Fonterra farmers had internet access or interference problems.

He estimated broadband would cut costs and cut the amount of time farmers spent on-line for the same job by 80 per cent.

"This package seriously opens the potential for technology that'll monitor and control farm systems."

- NZPA