Telecom to invest $58 million in rural network

1.00pm

Telecom is to invest $58 million on the rural telecommunications network in the next financial year, according to chief executive Theresa Gattung.

Speaking at the National Agricultural Fieldays at Mystery Creek today, Ms Gattung said the money would be spent on rural phone lines, mobile coverage and expanding broadband coverage.

As part of the capital investment, Telecom would be installing 350 new DSLAM 'broadband booster boxes', mainly in rural communities, to improve the capacity of local exchanges and increase the reach of its JetStream network.

Ms Gattung said some of this development would be assisted by the Government's ProjectProbe.

Ms Gattung said Telecom had already passed its target of having broadband internet available to 80 per cent of rural phone subscribers by the end of this year.

"We passed last year's target for rural broadband coverage in April. We're now aiming for 85 per cent coverage via Xtra JetStream and Xtra Wireless by the end of this year, and 90 per cent coverage by next June," Ms Gattung said.

Telecom shares last traded yesterday at $5.63.

- NZPA