Major New Zealand cities could be waiting 10 years to benefit from the rollout of ultra-fast broadband (UFB), with the Government refusing give a shorter timeline.
Communications and Information Technology Minister Steven Joyce today announced the first areas that would be part of the programme, after Crown Fibre Holdings (CFH) concluded negotiations with two partner companies, Northpower and Ultra Fast Fibre.
They were Whangarei, Hamilton, Cambridge, Te Awamutu, Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa.
Northpower would begin its roll out in Whangarei before Christmas, while Ultra Fast Fibre was expected to get started next year.
However, 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."
Mr Joyce said he would be hoping 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."
Mr Joyce said he thought the difference between the copper service and the UFB was significant.
"It will open up a huge range of opportunities for ISPs to provide new services as well as existing services," Mr Joyce said.
"As well as getting your video faster you'll also have the opportunity for things such as movies on demand, from a retail perspective, two-way video conferencing to work from home, the options for e-health are quite exciting."
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.
Mr Joyce said it was expected that prices would be similar throughout the country.
