Far North pushing broadband access

ADAM GIFFORD reports on steps to bring faster internet access to the regions.

The Far North Development Trust is moving ahead with plans to create a telecommunications company which will bring broadband internet access to the region.

Spokesman Chris Matthews said the trust was talking to a number of potential partners, including Telecom and BCL (Broadcast Communications Ltd).

"We're talking to those two because logically they have the network capacity," Mr Matthews said.

"There will be no need to establish a new infrastructure, so we don't need millions of dollars to put this in place."

The trust was one of six organisations selected by the Government to share in a $300,000 fund to pay for feasibility work to bring broadband internet to the regions.

Economic Development Minister Jim Anderton said broadband was crucial for economic and social development.

"Connecting more businesses raises productivity, reduces costs and fosters innovation and industry development," Mr Anderton said.

Mr Matthews said that when his trust was established by the Far North District Council three years ago, it identified lack of broadband access as a major barrier to development. Those conclusions were put to the new Government in late 1999.

"Our intention now is to offer a full range of telecommunications services, either through partnerships or directly, including access to fast internet services.

"The research we have done was clear that for remote areas to develop broadband sustainably, it needed to be part of a larger basket of services so you can do cross-subsidisation."

Far North Mayor Yvonne Sharp said the trust was now finalising the business plan.

"We need to see more data so we are sure it is the best solution."

She said the trust had enough resources, including council cash and the money put in by the Government, to complete its planning.

Communications Minister Paul Swain said the Far North group had made good progress.

Other groups included in the deal announced last week are in Southland, Taranaki, Wairarapa, South Waikato and East Cape.

"They will be able to hire someone to go about the regions and bundle demand and negotiate with the telecommunications companies to see what deals they can get," Mr Swain said.

One model regions could look at was Otago, where the local community trust had put aside $300,000 to underwrite the upgrade of switches in Telecom's local exchanges so secondary schools could get the Jetstream service.

If enough other customers signed up in each exchange, the trust would not have to pay out.

"The Government doesn't want to be seen to subsidise telecommunications companies. What the pilots will show is whether the various concepts work, and what they learn must be shared with other communities," Mr Swain said.

The Government had set a target of the end of 2003 for all communities to have access to two-way, high-speed internet.

While a number of companies had parts of a potential solution, regional groups would have to work with either Telecom or BCL for backbone network coverage.



Ihug director Nick Wood said the pilots were a positive development, but underlying issues of spectrum allocation needed to be resolved.

"The real potential is in the 3.4 to 3.6 gigahertz band, which they have made noises about selling. That's ideal for wireless and local loop."