Telecom chief executive Paul Reynolds appears to be running out of patience with Crown Fibre Holdings, the body organising the Government's ambitious ultra-fast broadband project (UFB).
Crown Fibre Holdings (CFH) yesterday announced it had concluded negotiations with two partner companies - Northpower and Ultra Fast Fibre - to introduce UFB in Hamilton, Tauranga, Whangarei, New Plymouth and Wanganui.
Northpower would start its work in Whangarei before Christmas and Ultra Fast Fibre was expected to begin laying fibre early in 2011. Both companies would have completed their work by 2015.
Dr Reynolds said Telecom noted the announcement which confirmed CFH's previously indicated intention in those areas.
Telecom's proposal was focused on the remainder of the country.
"We continue to engage in the process being run by CFH to determine the successful partners for the rest of the country. However, time is running out and we are conscious that our shareholders need resolution."
Telecom believed that a structurally separate Chorus, as the cornerstone of a national framework for fibre, was the most efficient and effective way to deliver the Government's fibre vision and that was reflected in Telecom's proposal, he said.
The company was also open to partnership with other public and private sector owners of fibre assets, including those selected as CFH's partners,Dr Reynolds said.
Communications and Information Technology Minister Steven Joyce said the joint ventures announced yesterday represented nearly 16% of UFB premises and a combined value of more than $200 million.
The UFB project would see 75% coverage of ultra-fast broadband across New Zealand by 2019.
But while the available of ultra-fast broadband was a key part of the Government's economic growth agenda, Mr Joyce said he did not want to put a timetable on other cities, including Auckland and Wellington.
"If you put limits around negotiations then that does make it more difficult for CFH to do their job to get value for money for taxpayers with the investment, and we need to give them the time to make those calls."
He hoped those deals would be made within this political term but said there were no guarantees.
"I can be confident that we can get it all built within the 10-year term, 2019."
The difference between the copper wire service and UFB was significant, Mr Joyce said.
UFB would open up a large opportunities for internet service providers to provide new services, as well as existing services.
As well as getting video faster, customers would have the opportunity for things such as movies on demand. Two-way video conferencing to work from home and the options for e-health were "quite exciting", he said.
Wholesale household prices would start at $40 or less per month for an entry level product and $60 per month for the 100 megabit product. There were no connection charges for households.
