Joint venture helps extend Wired Country broadband network

By ADAM GIFFORD

The dark horse of the broadband race, Pukekohe-based lines company Counties Power, has entered a joint venture with its King Country counterpart The Lines Company to extend its Wired Country broadband network.

Counties Power chief executive Neil Simmonds said the venture will cost each company about $5 million to get started.

"We have a quality relationship without bankers," said Simmonds, adding that Counties Power was prepared to wait 10 years for a full return on its Wired Country investment.

The optical fibre and wireless hybrid network will initially deliver high-speed internet and telephone services to businesses and homes in and around Te Kuiti and Otorohanga, then take in the Waitomo, Taumarunui, Ohakune, Turangi and National Park.

Simmonds said while the companies wanted to extend the network to cover all rural areas as well, that depended on the wireless technology the venture chooses and whether the it can get a subsidy from the Government's Provincial Broadband Extension (Probe) project, which aims to wire up the nation's schools.

He said most customers will probably access the network with 3.5 GHz wireless connections.

Counties Power still hasn't chosen a wireless technology provider. A month ago it pulled the plug on talks with Texas-based Navini after it was unable to get guarantees about the voice-capability of its equipment.

Counties Power surprised many in the power and telecommunications industries when it bought frequency in the last Government auction to use for wireless broadband.

It has since made considerable progress rolling out a fibre network in Pukekohe, which now has paying customers on it, while many other potential broadband suppliers are still jostling for Probe money.

And while other players in the broadband market are trying to build full service network companies, Counties Power sees its role as similar to what it does in the power industry, providing the infrastructure for retailers to use.

Wired Country will own the customer premises equipment used to connect to the network, rather than requiring the customer to buy it up front or over time.

Simmonds said Counties Power can use what it has learned rolling out Wired Country in Franklin and Papakura to ensure rapid system design, equipment purchase and roll-out in King Country and Ruapehu.

The Lines Company chief executive John Anderson said the first customers should be using the new services by November.

The Lines Company has 22,000 customers and 4500 km of lines, covering 13,700 square kilometres.