Rural Broadband - Six year rollout too long

29 September 2009

RWNZ's Telecommunications spokesperson, Jacky Stafford, told National Radio's Checkpoint programme that the Government should be putting more money into rural broadband now, rather than rolling out the fibre network upgrade over six years.

The comments came after the Government announced its funding plan for rural broadband earlier today.  The Government is proposing to fund the $300 million rural initiative "through a combination of direct government funding and revenue from a more transparent and effective industry levy than the current TSO levy," according to Technology Minister Steven Joyce.

The Government will provide a direct contribution of $48 million and further interim funding of up to $52 million.  The remaining funding will be sourced by replacing the existing TSO industry funding with "a more transparent contestable industry-wide mechanism that focuses on developing rural communications".

Jacky Stafford says RWNZ has concerns about contestable funding which has had poor uptake in the past.  "Providers are not jumping up to come out to rural areas and  I am not sure that this initiative is going to make them come out."

"I think we have to look at this with caution.  Where does satellite fit into this?  For many rural areas and customers it is the only option.  We are a long way from cabinets and schools."

While she says it is fantastic that the Government has taken on board that rural people need fast broadband to run their businesses and participate in society there are a lot of rural people who are a long way from where the fibre networ is going to reach.

"The Government has to go further than looking at the schools, and six years is a long time to wait."

RWNZ is calling on the Government to spend the $300 million very quickly, rather than over six years.

It is an equity issue, says Ms Stafford, with the Government set to spend $1.5 billion on ultra-fast urban broadband.