Fibre investment is a priority

In the report the Institute conservatively identifies potential national economic benefits from broadband of between $2.7 and $4.4 billion per year, and it could be considerably more when innovation opportunities are also taken into account. The key requirement to achieve these benefits is investment in a nationwide fibre network. There is a significant cost to waiting and so urgency is required. "We welcome this report from the The New Zealand Institute and are supportive of the project that it is a part of," says InternetNZ Executive Director Keith Davidson. "The benefits of fibre investment are thoroughy explored, and the limits and risks of reliance on the existing copper access infrastructure are clearly articulated. "We can thank the Government that the benefits of unbundling of the copper local loop and related technologies will be maximised in the near term through the operational separation plan and other regulation. However, it needs to be understood that the future will depend on how expediently we investment in fibre, which can deliver far greater data speeds. "Without a substantial fibre network, New Zealand stands to miss out on productivity gains and business opportunities, and will suffer from an inability to communicate and collaborate at the same level as our trading partners. Stage 2 of the Institute's report will consider the mix, public and private, of investment required for fibre development, and the preferred path forward. "We look forward with interest to the November report from the NZ Institute," says Davidson. "The critical strategic decision to move rapidly to Fibre To The Home must not be delayed." For more information contact: Keith DavidsonExecutive DirectorInternetNZ021 377 587exe.dir@internetnz.net.nz