WELLINGTON, New Zealand (AP) A plan by the New Zealand government to upgrade the country's notoriously slow Internet service has hit a snag after accountants confirmed the main contractor is facing financial problems.
The government agreed to spend $1.1 billion over the next six years to lay fiber cable throughout much of the country to replace existing copper cables. But Communications Minister Amy Adams said Thursday that accountants at Ernst & Young have told her that infrastructure company Chorus is at risk of not fulfilling its contract.
A recent report by technology company Akamai found New Zealand's Internet speed averaged 4.6 megabits per second, placing it 49th in the world rankings and behind most developed and tech-savvy nations. South Korea topped the rankings at an average 13.3 Mbps while the U.S. was ranked eighth at 8.7 Mbps.
Adams said the government remains committed to its plans and she hopes the agency overseeing the work can amend existing Chorus contracts without costing taxpayers more money or delaying the rollout.
She said that options include paying Chorus earlier and changing some technical specifications of the cable network.