Net deals close for country schools

By PETER GRIFFIN, telecoms writer

Telecom has nailed down the commercial details of its first contract with the Government to bring broadband to rural schools. Seven other Telecom contracts are to be signed in the next few weeks.

The deal means outlying schools in the Waikato will be able to receive flat-rate, two-way broadband at 512Kbps (kilobits per second) capable of voice conferencing, from $715 a month with a $995 set-up fee.

The Government will also pay Telecom and transmission tower operator BCL to extend broadband to all schools in Taranaki, Wellington, Bay of Plenty, Gisborne and Hawkes Bay, West Coast, Manawatu, Wanganui and Otago.

Telecom chief executive Theresa Gattung said that 90 per cent of the country could now be reached via broadband with the help of wireless access from BCL.

She said the next step was to ensure that the various Probe (Provincial Broadband Extension) regions developed inter-operable services and Telecom would look to bodies such as Probe support organisation eRegions to ensure seamless communications.

The Government will not reveal to what extent it has subsidised Telecom's broadband efforts in those regions until all the contracts have been signed.

An industry source close to Telecom said the Government's contribution was similar to that Telecom received in Kiwi Share subsidies from its competitors - around $15 million.

Other companies such as Woosh Wireless, thepacific.net and Counties Power have another six regions between them.

The total Government subsidy is believed to be about $30 million.

Probe co-ordinator Tony van Horrock said Probe would serve to "equalise" the broadband pricing for schools in metropolitan and rural areas.

Those schools coming online in rural areas could use Telecom's "School Zone services" which start at $715 a month for a roll up to 49 pupils and go through to $1865 a month for 2000 pupils.

Pricing is likely to be higher for schools reached via BCL's wireless towers.

"We're not dictating to schools what services they should take up," said van Horrock. Nor was it Probe's job to enforce what pricing should be charged to schools.

"You're on hairy ground with the Commerce Commission when you try to do that."

Contracts between the Government and companies successful in winning Probe tenders were meant to have been signed and sealed last July. All schools are scheduled to have broadband access by the end of the year.

A handful of satellite operators are working with local telcos to bid for Probe's "region 15" covering areas well beyond the reach of Telecom and BCL. Van Horrock said around 100 schools nationwide would have to be reached by satellite.