Government funds worry rival to Telecom

By RICHARD WOOD

A Nelson regional wireless internet operator has questioned the need for Project Probe funding after building a network to compete with Telecom last year.

Chief executive Steve Christie said ThePacific.net already had a broadband network offering 2Mbps (megabits per second) links both ways "without any money from the Government coffers".

"The wireless network is incredibly successful and is pretty much satisfying all the needs at the moment, particularly for the small-business and home-office market and rural businesses such as orchardists and wineries."

But Probe - a Government project with $30 million in funds to provide broadband access to all schools - was as much a threat as an opportunity.

If ThePacific.net did not apply for Probe funds then it faced competing with a Government-subsidised operation.

Christie said it seemed bizarre that the Government was offering money to do what had already been done.

"All they need to do is give the money to schools to enable them to get a broadband connection, and encourage them to do so. Of all the primary schools we cover, only one has broadband with us."

Christie said the cost of establishing the operation was only $500,000. Expansion to include Marlborough would cost only around $200,000 because the basic infrastructure was in place, and the firm had completed site and customer surveys there.

He acknowledged Probe money would speed up the installation process.

ThePacific.net's major shareholders are Nelson internet provider Tasman Solutions and Westport's Buller Electricity. The organisation has eight wireless transmission sites across Nelson and Westport and claims to have coverage out to 90 per cent of that population.

Christie said the firm faced fierce competition from Telecom's Jetstream service. But "hundreds" of people had signed up and the most remote customer was 19km from a transmission site.

Connecting costs $400, which includes an internet gateway ebox with integrated firewall service and billing system. On the most popular plan, the cost is $134 per month up for 500Mb of international traffic, 2Gb of national traffic, and unlimited local.