In the News : Telecom NZ Limited. Beehive.govt.nz - Ultra Fast Broadband deal puts NZ ahead of the pack. The government has today reached agreements with Telecom New Zealand and Enable Networks that will complete the roll out of ultra fast broadband (UFB) to 75% of New Zealanders where they live, work and study.
The government will partner with Enable Networks, which is 100% owned by Christchurch ratepayers through the Christchurch City Council, to build an ultra fast broadband network for Christchurch, Rangiora and surrounding areas. The Telecom deals will see a fibre optic network built in Auckland, the eastern and lower North Island and most of the South Island. As part of the deal, Telecom must split off its network arm, Chorus, into a completely separate company, so that all broadband retailers can compete fairly to on-sell wholesale ultra fast broadband.
Chorus will maintain the Kiwishare obligations currently placed on Telecom. These are the third and fourth partnerships in place for the roll out of the UFB initiative. Mr Joyce says today is a very exciting day for New Zealand. UFB prices: good news and bad news. 20 Apr 2011 There has been one overriding goal of the Government’s Ultra Fast Broadband (UFB) efforts so far- reduce prices to drive up customer uptake.
Whether it’s the network architecture or excruciating negotiations, it’s all been about keeping prices down. That’s a good thing. Even if low prices are only a “necessary but not sufficient” factor to drive customer uptake (there’s other important stuff too like data caps). But let’s focus on the “necessary” bit of UFB prices for the time being. My view is that initial UFB prices are great. Wholesale Prices Keep in mind that UFB prices are set as caps on wholesale prices for different products in a contract between the Government and the private partner in the Local Fibre Company (LFC) for a ten year period. Also keep in mind that “nominal” prices are what we pay, the sticker price.
What will wholesale prices look like? The entry product is 30 Mbps downstream, 10 Mbps upstream, 2.5 Mbps CIR (Committed Information Rate). Retail Prices Bad News. UFB Model Amendments Announced. Communications and Information Technology Minister Steven Joyce today announced amendments to the model for the Ultra-Fast Broadband (UFB) Initiative.
"Following the extensive feedback that Crown Fibre Holdings (CFH) has received from the telecommunications industry and UFB Initiative respondents after receiving its first round of bids in the UFB tender process, certain revisions to the UFB model have been agreed by Cabinet this week," says Mr Joyce. "These amendments will further improve the business model for local fibre companies and facilitate additional co-investment from the private sector". A number of respondents to the Crown's initial Invitation to Participate (ITP) advised they support a move to offering open access at Layer 2 of the ultra-fast broadband network as well as Layer 1.
This feedback has been echoed across the industry. "Careful consideration has been given to the issue of open access. Www.med.govt.nz/ultra-fast-broadband. Questions and answers: •1. 2. 3. More Prioritised Bidders Announced for UFB Initiative. Date :13 December 2010 | Source :Crown Fibre Holdings Strict Embargo: 0830 13 December 2010 Crown Fibre Holdings (CFH) has announced the selection of a further three parties for priority negotiations in the ultra-fast broadband (UFB) initiative.
The three parties are: Telecom Corporation of New Zealand Limited: covering 25 candidate areas;Enable Networks: covering Christchurch and Rangiora ; andFlute Joint Venture represented by Aurora Energy Limited: covering Dunedin These three parties have provided attractive proposals to CFH , including a combination of access prices in line with those announced last week, the ability to complete the UFB build within the Government’s allocated budget, as well as having industry experience and financial strength,” said CFH Chairman Simon Allen. “CFH is very encouraged by these three proposals. “CFH is also open to these parties partnering in their candidate areas in order to deliver greater infrastructural utilisation. Approved Agreements: Shortlisted: 1.