Aurora proceeding with broadband plans

An international credit crunch, the roll-out of rival broadband schemes and a general improvement in the performance of large ISPs has not dented enthusiasm for a new municipal high-speed broadband network in Dunedin.

Aurora Energy Ltd, a council-controlled organisation, is pressing ahead with plans for a multimillion-dollar fibre network linking Dunedin's key businesses, council buildings, education facilities and Dunedin Hospital.

Aurora chief executive John Walsh said yesterday plans for a small pilot of the scheme in Dunedin were being drawn up, ahead of any roll-out of the network across the central city.

However, one hurdle was emerging in the shape of a possible change of government come the November 8 election, which could change broadband spending priorities in Wellington in the wake of the rapidly changing international economic environment, Mr Walsh said.

Aurora has applied for a $3 million share of the Government's $340 broadband investment fund to help pay for the Dunedin scheme, with an announcement expected in early December.

Mr Walsh said recent announcements by TelstraClear, which is planning a high-speed VDSL2 network for Dunedin businesses by Christmas, and Telecom, rolling out ADSL2+ network to Dunedin homes, had not changed his views on the planned municipal network.

"I don't think the picture's changed . . . if [the] Government has got this money [the $340 million broadband fund] on the table, there must be a need for it," Mr Walsh said yesterday.

Neither had the findings of a Commerce Commission quarterly report, released yesterday, which concluded the overall performance of the country's five largest Internet service providers (ISPs) was improving, he said.

The report, the Commerce Commission's second, showed the five ISPs - Telecom, TelstraClear, Vodafone, Orcon and Slingshot - had all made small improvements in their services offered in Dunedin, compared to the previous quarterly report in March.

The biggest improvements in variables, including reliability, connection and download speeds, were found in the main centres of Auckland, Wellington and Christchurch, the report concluded.

Telecom's roll-out of ADSL2+ in Dunedin promised speeds of between 10 Megabits per second (Mbps) and 24Mbps to 99% of homes by 2011.

TelstraClear's VDSL2 aimed for 30Mbps downstream and 7Mbps upstream, and data caps of between one and 20 gigabytes, for its business customers.

Aurora's planned fibre network promised speeds of between 100Mbps and 10 gigabits per second, while Cr Dave Cull - who has been involved in the project - said the network could be extended to bring fibre broadband to Dunedin homes in 10-15 years.