The first is to ensure that the priority is on the extension of such services to the business and the farm so as to underpin increasing productivity.

The second is to ensure that a stronger competitive environment is encouraged, rather than entrenching an incumbent monopoly.

The third is to lever the maximum private sector investment in relation to any taxpayer investment or subsidy.

And the fourth is to ensure any programme does not lock us into particular technological solutions.

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$500 million over five years as the first stage of a ten year programme

The largest part is the new Broadband Investment Fund which will be used to accelerate broadband investment in three critical areas:

? facilitating high speed broadband to businesses and local authorities, universities, schools and hospitals in urban centres
? extending the reach of broadband into underserved regions, and
? improving the resilience of New Zealand?s international connections.

The fund will involve a contestable process designed to maximise competition in the sector. The criteria are based on open access and are neutral to technology. The fund should assist investor certainty and give the best possible leverage for the taxpayer's investment.

The Government will also spend at least $160 million over the next five years on connectivity in the health sector, the education sector through the KAREN network, and through the Government Shared Network. We will aggregate demand to speed deployment and ensure efficient use of broadband.