Mr Cunliffe previews Govts. Broadband package

RADIO NEW ZEALAND: Communications Minister David Cunliffe says the Government will soon outline its own financial package to propel fibre broadband technology to the home, in response to the National Party's $1.5 billion plan.

Mr Cunliffe told the Telecommunications Users Association conference in Wellington on Thursday he had an ambitious plan of his own to tackle the shift from copper wires to fibre within a decade.

He said National's plan would reinforce Telecom's dominance, but ruled out funding and setting up a publicly-funded fibre network company.

The minister said the Government's plan would be competitive, support an open market, and be 'technology neutral'.

"The abiding flaw with what the National Party's talking about, is that a nationwide capital tender can, in effect, only be partnered by one organisation, which sets that up to dictate the terms, and set up a new dominance, and we will avoid that in our design."

National Party finance spokesman Bill English told the conference its $1.5 billion fibre plan will need to make a return.

While there are no details at the moment, Mr English said National's plan will involve partnerships with the private sector.

"Some of the providers I've talked to think that the answer to this is for the government to own the network and expect no return on it so everyone can offer cheap services. Well we ain't gonna do that."

He said that to be competitive and dynamic, there must be some investment pressure.

Mr English also admitted he had been sceptical about the benefits of public investment in telecommunications.

But he told the audience that opening up Telecom's network requires Crown money, as firms will no longer take all the risk, and National recognises that to get investment in fibre sooner rather than later, the Crown needs to front up with the cash.