First three regions selected for fibre rollout

September 9th, 2010 at 10:18 am by David Farrar

Crown Holdings have just announced three parties who are entering prioritised negotiations for the roll-out. This will come as a surpise to those who assumed that Telecom/Chorus will win a nationwide contract. The three parties are:

  • Alpine Energy (Timaru);
  • The Central North Island Fibre Consortium (Hamilton – including Cambridge and Te Awamutu – Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa); and
  • Northpower (Whangarei).

This is a welcome step forward, and residents in those communities should be pleased.

CFH note:

“All shortlisted parties remain important contenders for future negotiations of binding agreements.  CFH is open to either a Telecom, New Zealand Regional Fibre Group solution, or some form of combination for the balance of the UFB project.”

So Telecom (and the NZ Regional Fibre Group) can still win the rest of NZ. If they did, presumably they would co-operate with the winners in the above areas. There is of course a risk Telecom/Chorus will try to undercut, if they don’t win a significant portion of the business. That will lead to infrastructure competition which is good in the short term, but inefficient in the long term. Services, rather than infrastructure, is where you want the competition to be.

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14 Responses to “First three regions selected for fibre rollout”

  1. burt (8,269 comments) says:

    Christchurch should be first, there is already a massive amount of work on roads and infrastructure going on so piggy back on that and give the shaken residensts a small silver lining to all the disruption.

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  2. Inventory2 (10,337 comments) says:

    Ultra-fast broadband the Wanganui? Hell, yes!

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  3. Viking2 (11,467 comments) says:

    don’t know much about this stuff but Tauranga has had 3 companies burying fibre as fast as they can go for the last 2 years.
    Is it a different flavour or what. We have new cabinets everywhere and reasonably fast online service. Now I don’t play games and stuff so maybe that would be different but one wonders if Testra and Telecom and our local council (who haven’t asked the ratepayers at all) are burying cable. What’s left for others especially when we have EOL here with wizz bang wifi and ramping that up along with the Isrealie company. (now that’s not an invitation for the fruit cakes to rant on about their views on their favourite demons.)

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  4. James Stephenson (2,173 comments) says:

    I really don’t see why I need 100Mb down a fibre if I can get 30Mb over VDSL2 from Telecom, and they’ve got a cabinet at the end of my road already.

    [DPF: Actually getting 30 Mb/s, as opposed to being told you can potentially get that speed is part of the challenge. But as we shift to group video conferencing from home, play on demand high def video, instant backups thru the Internet etc, 100Mb is more realistic IMO]

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  5. Jack5 (5,137 comments) says:

    Good. We’ll get an idea of economic effects, if noticeable, in these areas first.

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  6. Brian Smaller (4,023 comments) says:

    Ultra-fast broadband the Wanganui? Hell, yes!

    As long as it gets out Mangamahu. Internet is now one of our biggest monthly costs as I have to use satelite.

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  7. trout (939 comments) says:

    Where I live in Auckland our suburb is fully reticulated with fibre optic. It was all done by Telecom before they pulled the plug and cancelled contracts with all the cable layers. I think this was when they discovered they could improve the performance of the copper network and roll out Jetstream. Perhaps we will now be connected to the much superior optic network and put poor man’s broadband behind us.

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  8. Jack5 (5,137 comments) says:

    Telecom’s share price has fallen today after the decision.

    Ah well, the foreign investors should have known it was dangerous to invest in a socialist country where the state rules rather than the market.

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  9. James Stephenson (2,173 comments) says:

    DPF – The potential for VDSL2 is 50Mb, I reckon it’s pretty do-able to see 30 if you’re 800-1000m from the cabinet. It amazes me that nobody’s talking about what the impact will be on the core network if whatever percentage of the population has 100Mb…like to hazard a guess how well the long haul fibre in this country will handle 100G?

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  10. Caleb (479 comments) says:

    i wonder if the maori party is helping broker the deals…

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  11. metcalph (1,430 comments) says:

    Why the hell is Timaru selected for the rollout?

    They should be punished for SCF and get nothing.

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  12. Jeremy Harris (319 comments) says:

    Telecom’s share price has fallen today after the decision.

    Ah well, the foreign investors should have known it was dangerous to invest in a socialist country where the state rules rather than the market.

    I’m guessing Aussie Telstra investors are thinking the same thing now after the $43,000,000,000 destruction of their shareholding is now imminent… Luckily I stick to the “old economy” myself (apart from Kiwisaver, can’t find any good value investors so far, suggestions anyone?)…

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