Will New Zealand's broadband future be with utilities?

Network Strategies findings presented at NZCID workshop

Auckland, New Zealand – March 17, 2009

A national ultra-high speed broadband network could be achieved, with the best opportunity for dramatic improvement of New Zealand’s infrastructure being via a utility business expansion model.

In her presentation at the New Zealand Council for Infrastructure Development (NZCID) workshop on 6 March, Network Strategies Director Dr Suella Hansen outlined the various business and technology models for infrastructure capable of delivering 100Mbit/s to the home user.

The cost of such a network will depend upon the technology used, however considerable savings are possible if structure costs (trenches, ducts and overhead poles) can be reduced.

Exhibit 1: Total investment required, by business model [Source: Network Strategies]

20090317“Without public funding, infrastructure will be deployed on a strictly commercial basis, where the availability of services will depend upon where you live,” said Dr Hansen. “Business models with the greatest chance of success will be public-private partnerships and expansion of an existing utility’s business.”

The Minister for Communications and Information Technology, the Hon Steven Joyce, described the Network Strategies analysis as “a detailed and useful contribution during a time when we are developing the government's policy for accelerating the roll-out of ultra-fast broadband to 75% of New Zealanders. The report usefully considers what infrastructure models might achieve a New Zealand fibre broadband infrastructure.”

Our analysis was commissioned by InternetNZ.

About Network Strategies

Network Strategies works at the forefront of the telecommunications revolution, delivering advice and insight to operators, manufacturers and governments. From offices in Auckland, London, Melbourne and Wellington, Network Strategies staff provide strategic consultancy to clients throughout the Asia-Pacific region, Europe and North America, offering a complete global outlook on key issues affecting all players in the telecoms sector.

Media contacts

New Zealand:
Suella Hansen
Tel: +64 9 522 1702
E-mail: s.hansen@strategies.nzl.com

Noelle Jones
Tel: +61 3 9830 0152