Govt starts chasing private cash for broadband plan

The Government is looking for private providers to stump up for its $1.5bn fibre optic plan. Photo / Warren Buckland

A process to seek private providers to work with the Government on its $1.5 billion broadband roll-out began today.

Communications and Information Technology Minister Steven Joyce said private providers who wanted to apply to co-invest with the Government in ultra-fast broadband fibre infrastructure could now do so.

The invitation to participate (ITP) provided terms and conditions of the Government's investment, including technical specifications and its preferred commercial model for co-investing with partners in a Local Fibre Company (LFC).

The LFC will deploy, own and operate the open access network in a given coverage area.

"The ITP is based upon an innovative commercial model that will see the Government largely fund the deployment of fibre into communities, and the Crown's LFC partner gradually taking a greater share in the LFC as it connects customers," Mr Joyce said.

"This risk sharing model overcomes the major hurdle of uncertain demand."

The Ministry of Economic Development would hold briefings in Auckland, Wellington and Christchurch over the next few weeks to explain the process.

Parties had to lodge interest by November 13 and proposals had to be lodged by the end of January.

- NZPA