The opportunity to extend fibre broadband from 87% to 95% of New Zealand has been officially endorsed by the Infrastructure Commission, Te Waihanga, as part of its Infrastructure Priorities Programme (IPP), recognising rural connectivity as a critical national issue.
The endorsement of the proposal by Chorus was announced as part of the release of the draft National Infrastructure Plan at the Looking Ahead Infrastructure Symposium in Wellington.
“This endorsement reinforces that digital infrastructure is essential national infrastructure,” says Chorus CEO Mark Aue. “Just like roads and water, fibre connectivity underpins our economy, education, healthcare, and social wellbeing.”
The endorsement reflects the proposal’s strong economic case. It is projected to deliver over $17 billion in benefits over the next decade, with particularly significant gains for rural communities that have long faced digital disadvantage.
In its assessment, the Infrastructure Commission awarded the proposal a green rating for value for money, highlighting its strong Benefit Cost Ratio (BCR) of 6.3 – significantly higher than many traditional infrastructure projects.
“This is a project that’s ready to move forward,” says Aue. “We have a proven track record of delivering large-scale fibre rollouts on time and on budget.
“The original fibre rollout stands as one of the most successful public-private partnerships to date – and we’re about to repay the first tranche of funding from that programme, a milestone $170 million. This success provides a strong foundation to build on. We’re ready to work with government again to explore innovative funding models that draw on both public and private capital to extend fibre coverage even further.”
Aue says that with government backing, Chorus could have spades in the ground and begin connecting new people, homes and businesses to fibre within a few months.
“But it doesn’t have to be all or nothing. Our proposal lends itself to staged delivery, allowing investment to be spread over time while delivering real benefits at each step.”
The Infrastructure Commission’s assessment also highlighted a critical policy gap: the absence of a rural communications strategy.
“Our proposal was marked down for not aligning with a strategy that doesn’t exist,” says Aue. “We urge the government to develop a comprehensive rural connectivity strategy to guide investment and ensure digital infrastructure is fully integrated into national planning.
“Reliable, scalable, high-performing connectivity is no longer a luxury; it’s essential. We need a clear plan to ensure rural New Zealand isn’t left behind,” says Aue.
