Published on the 02/02/2011 | Written by Newsdesk
Federated Farmers chief executive officer Conor English says the Government’s rural broadband initiative (RBI) needs significant change to deliver real value…
He says RBI targets are too low and it may take rural communities decades to catch up to urban counterparts.
“The Government should be thinking about a step change to future proof rural communities as it considers the outcome of its $300 million RBI,” English says.
An update by the Ministry of Economic Development on the three shortlisted contenders is expected within two weeks with the joint Telecom/Vodafone bid tipped by some to be in the lead.
The federation lobbied Government to increase its investment from $48 million to $300 million.
“While this still doesn’t match the level of investment going into the Ultra Fast Broadband initiative, it is critical Government gets it right,” English says.
“They have an opportunity to set our rural communities up for the next quarter century with world beating broadband.”
He recommends the Government keeps an eye on 4G Long Term Evolution (LTE) wireless network alternative being rolled out in Australia, India and China.
“We don’t want to put up with rural broadband speeds, which the cities had six years previously,” he says.
English says competition between rural and urban initiatives is needed to drive innovation and service at the lowest possible cost, in line with public investment expectations.
“Instead of overcrowding the cities, ultrafast rural broadband could take pressure off the environment and infrastructure in places like Auckland.
He says it is also important that the regulatory framework ensures competition between retail providers with end user behavior driving services.
English says increased productivity from broadband is vital to the one million kiwis deemed rural who produce over 66 per cent of exports, primarily through agricultural and tourism enterprises.
“It will assist New Zealand’s jump to the next economic level,” he says.
“New Zealand needs every export dollar it can get so the Government needs to back rural New Zealand with a genuine step change that will future proof them.”
