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1819 posts

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# 22268 22-May-2008 15:06
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Money looks to be going into putting more fiber out there and the international links. The is policy i think they call it to help prevent monopoly and encourage it business to play together. I also see there is more tax brakes for businesses entertaining.

Finance Minister Michael Cullen delivers his ninth budget on this afternoon, there is talk about good things for the internet.

webcast on the the Parliament website here. (only quicktime and Mediaplayer, I want my flash tv)

Replays will also be available on the Parliament site

And the GOVT went down, could it be the load or the loading of the new infomation.

Quote from the budget:
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.


$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.

I like the look of this line "The criteria are based on open access and are neutral to technology."

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  # 132555 22-May-2008 15:23
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Glad to see also that Canterbury got a splash in the budget. Cervical cancer got funding but how come no prostate cancer funding?

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  # 132557 22-May-2008 15:32
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zocster: ... Cervical cancer got funding ...

I'm happy to hear this as my mother is one of many other cervical cancer survivals/patients

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  # 132857 23-May-2008 19:14
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Maybe we should rename this thread "election year broadband promises"...!

The 2008 Labour budget has taken the usual Labour piecemeal approach of allocating a pool of money for random grants and handouts. So far the various projects aimed at schools and universities etc have not resulted in a comprehensive or competitive nationwide service. Neither does such approach result in any capital return, since the handouts are essentially donations to a hopeful provider who may or may not develop a successful business model or enough infrastructure to create a really competitive venture.

Nationals proposal appears better thought through but again focuses on government investment to infrastructure that may or may not be economically viable. The proposal appears pretty inflexible, and passive fibre will definitely not be viable as the only technology in many areas eg rural.

I think it would make more sense for the government to start by installing many GigaPoP (Point of Presence) nodes in every area so that multiple backhaul providers can link to multiple subscriber line and radio providers all from the one node. The effect would be to lower the barriers for a new subscriber company to install street equipment in an area because the backhaul to their main backbone would already be connected. The subscriber company (eg Telecom, Orcon, Slingshot, Compass or Vodafone) would simply install their own cabinet next to the GigaPoP cabinet in the street, while other providers might decide to install their equipment in somebody elses cabinet but use a different backhaul provider without the cost of installing an extra 5km of active fibre.

If government wanted to heat up the competition for subscriber lines, any further rollout to houses and businesses doorsteps would have to compete equally with other line companies. Compare this idea to the current system where backhaul restrictions and costs effectively entrench the monopoly of whoever owns the backhaul fibre (eg Telecom).

Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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  # 132858 23-May-2008 19:16
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zocster: Glad to see also that Canterbury got a splash in the budget. Cervical cancer got funding but how come no prostate cancer funding?

The prime minister is hardly likely to get prostate cancer (i think??). But then again you have to wonder...........

Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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  # 132862 23-May-2008 19:26
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Another issue with the various broadband proposals emanating from Wellington is that big business, or those "knowledge economy" businesses that need high quality synchronous connections to make NZ's IT industry more compeitive internationally, have been virtually ignored.

Many businesses are still limited to 2Mbps over expensive Frame Relay connections, and running a GPON fibre past their door — or giving a handout to somebody who proposes to connect lots of schools — is not going to be the ideal solution for businesses that need something else.

Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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