That was the response from the Telecommunications Users Association of New Zealand to the announcement of Communications and Information Minister Steven Joyce's plans for the $1.5 billion ultra-fast broadband investment project.
"The association is especially pleased with the approach to balancing the need of investors for a predictable regulatory regime with the desire of users for a competitive market with real choice and value," association chief executive Ernie Newman said.
By dealing with competition issues related to fibre investment, and incorporating them in the design of the commercial structures, it should be possible to minimise the regulatory intervention that had been an unfortunate but necessary feature of the copper and mobile markets, he said.
Mr Joyce said in a statement the future of broadband was in fibre and taking it right to the home would bring significant gains in productivity, innovation and global reach.
The Government was committed to working with private sector partners to accelerate the introduction of ultra-fast broadband services to 75% of New Zealanders within the next 10 years.
Private sector companies had decided not to invest in a nationwide network of fibre to the home.
"The Government understands this and so wishes to assist and work with the private sector in improving the business case for ultra-fast broadband."
Crown Fibre Holdings, a company which would carry out the Government's partner selection process and manage the Government's investment in fibre networks, would be operational by October.
The Crown company and each partner would establish a "local fibre company" to deploy fibre network infrastructure and provide access to dark fibre (fibre in place but not used) projects.
There would be provision for national and regionally focused proposals, as well as a consortium and proposals aggregating any combination of local fibre company regions.
Mr Joyce said the Government had expanded the list of candidate regions to 33, based on the most populous urban areas, using 2021 population projections.
Telecom had put forward an alternate nationwide proposal to the Government's preliminary proposals which had been assessed by the Ministry of Economic Development.
"At this point in time, Telecom's proposal is not sufficiently attractive to justify moving away from a contestable regionally based process."
Telecom's proposal covered fewer homes and businesses, only provided ducts and not the fibre itself and did not clearly result in significant additional private sector expenditure above "business-as-usual" levels.
However, Telecom was not being ruled out of participating in the processes, but there were some rules around where the Government would invest, Mr Joyce said.
Telecom chief executive Paul Reynolds said given Telecom's strong support for the Government's plan for ultra-fast broadband, the company was disappointed the benefits of its national approach to going faster and further had been overlooked.
"Telecom was always open to suggestions on how its national proposal might be improved. Today's rejection of it is therefore disappointing."
The Government had reiterated its wish to avoid duplication of existing privately funded, world-class network infrastructure across New Zealand, he said.
The model outlined by Mr Joyce raised the possibility of such an outcome, Dr Reynolds said.
The Telecommunications Industry Group estimated building fibre-based broadband to reach 75% of New Zealanders would require an investment of around $6 billion.
"Clear commercial investment principles and an avoidance, wherever possible, of excessive overbuild will be essential to ensuring the scale of private investment necessary," chief executive Rob Spray said.
At a glance
> $1.5 billion ultra-fast broadband plan announced.
> Ultra-fast broadband to 75% of New Zealanders over 10 years, concentrating on businesses, schools and health services within the first six years.
> Crown Fibre Holdings will be operational by October.
> Telecom not excluded from participating.
