Southland's broadband to cost $24m

By RICHARD WOOD

Venture Southland says its broadband rollout to the region will cost $24 million, $20 million coming from the private sector, $2 million raised locally and $2 million from the Government.

Strategic projects manager Steve Canny said estimates of more than $40 million quoted previously included money customers needed to spend on access equipment for their work and homes, at between $200 and $700 for each device.

The Government money comes through the Ministry of Education's Project Probe, aimed at bringing high-speed internet access to regional schools and carrying communities along with it.

The project manager for Probe, Mark Forward, confirmed $2 million had been approved by the Cabinet.

The money will go on broadband wireless technology from Walker Wireless and Vodafone, which is due to begin in April, and will be complete in December next year.

The system is expected to provide coverage to between 92 and 95 per cent of the Southland community using 22 points of presence to reach a population of 92,000.

The $20 million being invested over time by private-sector firms, including Vodafone, involves "backhaul" fibre-optic capacity, switching services, and cellular network expansion - "everything that makes the total network work".

Canny said the cellular aspect was vital and part of Venture Southland's considerations at the outset.

"It makes a lot of sense because they use the same infrastructure and backhaul capacity."

Forward said regional groups that went out on their own before the Probe project announcement were still eligible for Probe money so long as they met the Government's criteria for going out to tender.

"Southland ... met the requirements for the Government in terms of the way they did their vendor selection. They approached Government for a sum of money and it has been approved."

The other early regions are Northland and Wairarapa.