RESPONSE TO BROADBAND ANNOUNCEMENT

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Telecom New Zealand today welcomed the government’s clarification of its preferred broadband investment model, and noted the far-reaching implications of the decision for the regulatory and commercial landscape.

“Given our strongly principled support for the government’s vision to bring ultra-fast broadband to 75% of New Zealanders, Telecom is disappointed the benefits of our national approach to going faster and further have been overlooked,” Telecom CEO Paul Reynolds said.

“Telecom retains a very a strong commitment to the vision of ubiquitous fast broadband, and our current FTTN investment programme supports this by pushing ultra-fast broadband out to more New Zealanders than ever before.

“This programme is now well advanced, employing a combination of fibre rollout and upgrades to exchange electronics throughout New Zealand. Within two years we will complete it, ensuring that at least 84% of New Zealanders have fast access to world-class broadband services.

“Our proposals to the Broadband Investment Initiative are national in scope, can be rolled out quickly, and leverage existing investment, while ensuring Telecom does not make any profit on taxpayer-funded infrastructure.

“In recent months we have met with government officials on many occasions to clarify our proposal. Telecom was always open to suggestions on how its national proposal might be improved. Today’s rejection of it is therefore disappointing.

“In its current form, and as set out in the questions and answers attached to Mr Joyce’s news release, the model announced today does appear to preclude Telecom’s involvement in the government’s process, just 18 months after operational separation formally came into effect.

“In the context of Telecom’s Undertakings on operational separation and associated investment, today’s announcement also raises the issue of the relevance of those Undertakings.

“The government has reiterated its wish to avoid duplication of existing, privately-funded world-class network infrastructure across New Zealand. The model set out in today’s announcement, however, raises the distinct possibility of just such an outcome.

“We look forward to further clarification by the government on the regulatory, competitive and operational issues raised by today’s major announcement, and we remain open to discussions,” Dr Reynolds said.

Contact

Mark Watts
0272 504 018

or

Ian Bonnar
027 215 7564

News Source : RESPONSE TO BROADBAND ANNOUNCEMENT