Fibre network to pave the way

By ADAM GIFFORD

Pukekohe-based Counties Power is preparing to light up its new fibre network, paving the way for a range of broadband internet, cable and voice services under its $21 million Wired Country initiative.

Chief executive Neil Simmonds said the power lines company had signed memorandums of understanding with several operators keen to use the fibre, and expects formal access agreements with at least five in the next couple of weeks.

Lighting the fibre would allow it to test the networks and associated services "and ensure the service reliability is as high as we want it to be," Simmonds said.

The fibre roll-out was almost complete around Pukekohe and was snaking towards Papakura.

Counties Power was leasing fibre from TelstraClear so it could terminate the network at the Skytower, to encourage retail competition.

"It makes sense to share the backbone costs or only the big players can afford to come here," Simmonds said.

The company was determined not to become a retailer itself, seeing more benefit for its business and the region by adopting the power industry model where the network is open to anyone who can meet the appropriate tests.

Less populous or remote areas would be covered by a wireless network, which Counties Power decided to build itself after extensive discussions with all the major industry players in New Zealand.

"We have tried with all of them and can't get a deal which works for us. The price would be so high the customers wouldn't take it up," Simmonds said.

He said the price set by Telecom's fast internet service, Jetstream, was obviously too high, given the relatively low take-up of it so far.

"You have got to do it better and cheaper. Better implies quality of service, so we bought our own spectrum, which we will use to ensure we keep our promises, like we do in the power business."

A decision on the preferred technology supplier for the wireless system, expected to cost about $5 million, is expected this month.

Counties Power has chosen technology from a United States company, World Wide Packets, to run its backbone Ethernet network. Simmonds said it wanted to offer customers a true broadband network which could handle a wide range of services including voice and video, not just internet and data.

He said it was likely voice would be more important initially than data, because New Zealand businesses had not bought into internet hype but they were willing to spend on technology to cut existing costs.

"New Zealanders are tough to sell to," Simmonds said. "They are willing to believe there will be added benefits from this technology, but they are not willing to spend for those alone."

Wired Country