Govt changes tack on broadband partnership

The Government is encouraging regional infrastructure companies to partner with national ones on proposals for its rural broadband initiative and has extended the tender deadline.

Expressions of interest were sought in April from organisations and groups of organisations interested in participating with the Government to roll-out fast broadband infrastructure to rural New Zealand.

Communications and Information Technology Minister Steven Joyce said today a significant number of high quality proposals were received.

"We are now seeking national coverage proposals, rather than region by region proposals," he said.

Mr Joyce said it was clear that some national infrastructure companies would be able to meet the rural broadband objectives, along with having the financial backing to guarantee their proposal, across the whole country, but it was also evident that while regional bidders were able to make a significant impact on broadband coverage, they would fall short of achieving the Government's targets for coverage.

As a result, the Government is encouraging regional infrastructure companies and other stakeholders to partner with national bidders, and is providing an additional six weeks for proposals to be prepared so discussions can take place between the groups.

"With this approach I am confident we will achieve our target of 80 percent of rural households and businesses having access to broadband services of 5Mbps or better and the remaining 20 per cent on speeds of 1Mbps within the six year period," Mr Joyce said.

The tender process closes on November 12 and the first agreement is expected to be signed by the end of the year.