Ultra-fast internet in 10 years

The National Party promised faster broadband for New Zealanders. Photo / Kenny Rodger

Plans for a billion dollar spend-up on ultra-fast broadband have been finalised by the Government.

An initiative to bring broadband at speeds of 100 megabits per second to urban areas within the next 10 years was a key National Party election promise.

Communications and IT Minister Steven Joyce yesterday released firm plans for how this would happen after several months considering feedback from telcos.

Under Joyce's plan the Government will partner telecommunications infrastructure players through a Crown-owned investment company to build fibre optic networks in 33 cities and towns.

The focus will be on "dark fibre", which telcos and internet service providers would buy access to, add their own electronics and use to provide a retail service.

Businesses, hospitals and schools would be among the first to benefit from the investment, with households getting faster broadband within the 10-year timeframe.

Partnership proposals will be accepted from any entity, including private equity, local government or iwi, so long as they do not provide a retail telecommunications service.

An investor with a retail business will not have the right to appoint the majority of directors to the board and will need to agree to an independent chairman.

Paul Winton, principal at Temple Investment and consultant to the New Zealand Institute, said the plan tabled by Joyce had the highest probability of achieving Government objectives.

"It really is a case of finding the best of a bunch of imperfect solutions," said Winton.