New Zealand's announces it is building NBN similar to Australia's (1 Viewer)

[Slidey]

New Zealand announces it is building NBN similar to Australia's

NZ's conservative coalition government plants to build a fibre to the home network at 100Mbps speeds covering at least 75% of households by 2020.

The rollout and funding methods looks set to be similar to Australia's.

For reference, Australia's NBN will be at 100Mbps speeds covering about 93% of the households by 2018 or so, IIRC. On a per capita basis, NZ's seems to be cheaper, though they clearly have a higher population density and lower coverage goal, so that would likely account for much of the difference.

Taking a page from the Australian broadband playbook, New Zealand has decided not to sit around while incumbent DSL operators milk the withered dugs of their cash cow until it keels over from old age. Instead, the Kiwis have established a government-owned corporation to invest NZ$1.5 billion for open-access fiber to the home. By 2020, 75 percent of residents should have, at a bare minimum, 100Mbps down/50 Mbps up with a choice of providers.

Crown Fibre Holdings Limited is the company, and it's wholly owned by the government—for now—and the company's mission couldn't be any clearer. Two of its six guiding principles include "focusing on building new infrastructure, and not unduly preserving the 'legacy assets' of the past" and "avoiding 'lining the pockets' of existing broadband network providers."

The New Zealand government set up the company late last year, but the government won't install and own the network by itself. Instead, Crown Fibre will partner with local companies across New Zealand to roll out fiber. Those companies will have to invest their own money as well, but in return they become part of the national dark fiber open-access system envisioned by Crown Fibre.

Here's how it works: every fiber builder who takes government money needs to lay basic, unmanaged dark fiber that any ISP can light in order to offer service to a particular home or business. The fiber companies can also run some particular Layer 2 services, but they can't offer full-blown Internet access directly. Instead, they are allowed to sell Internet access to their own retail unit so long as it operates like a separate business, and all other ISPs must be offered access at the same rate.

This keeps the government from simply "setting the price" and undercutting the market, but it also means that anyone can use the fiber infrastructure without competitive disadvantage.

Once the ten-year buildout ends, Crown Fibre will convert to a "successful, profit driven business" that oversees the complete network, shares in its revenues, and ensures national interoperability. (For the complete business arrangements, see appendix 2 of the government's Invitation to Participate [PDF]).

The government's 2010 budget, announced a few weeks ago, includes more cash for Crown Fibre's work. "This funding will enable Crown Fibre Holdings to start making substantial contract commitments with the private sector to start rolling out the new fibre network," said Deputy Prime Minister Bill English.

75% of New Zealanders to get 100Mbps fiber by 2020

 

[Kim Il-Sung]

Re: New Zealand announces it is building NBN similar to Australia's

good old New Zealand

all they want is to catch up to Australia

oh look they're building an NBN we had better build one as well

 

[Mayazcherquoi]

Re: New Zealand announces it is building NBN similar to Australia's

good old New Zealand

all they want is to catch up to Australia

oh look they're building an NBN we had better build one as well

Except theirs will complete quicker because it is such a smaller country.

 

[Calculon]

Re: New Zealand announces it is building NBN similar to Australia's

The biggest problem with the NBN is the population density bullshit. 90% of the cost is reaching the last 5-10% of the population, and to do so they're cross subsidising heavily from their metropolitan customers. Further, there are going to be laws which prevent other providers from setting up their own network to compete with the NBN, because these providers are not allowed to undercut its prices.

 

[Kim Il-Sung]

Re: New Zealand announces it is building NBN similar to Australia's

The biggest problem with the NBN is the population density bullshit.

u mean here or NZ?

 

[Calculon]

Re: New Zealand announces it is building NBN similar to Australia's

Here.

 

[Kim Il-Sung]

Re: New Zealand announces it is building NBN similar to Australia's

The biggest problem with the NBN is the population density bullshit. 90% of the cost is reaching the last 5-10% of the population, and to do so they're cross subsidising heavily from their metropolitan customers.

Maybe they should look at wireless for country bumpkins instead or just upgrade existing networks, isn't that what the LNP is suggesting?

Further, there are going to be laws which prevent other providers from setting up their own network to compete with the NBN, because these providers are not allowed to undercut its prices.

THIS is stupid. Typical socialist Labor BS, if they were so worried they should have tendered to Telstra or whoever else in the first place

 

[Optimus Prime]

Re: New Zealand announces it is building NBN similar to Australia's

or just used micronetworks by smaller providers in the city and put in the infrastructure in the country where it was prohibitively expensive for smaller companies to do so.