Rural areas miss broadband plan

People living in towns smaller than Oamaru will miss out on a $1.5 billion government plan to connect homes, schools and businesses with ultra-fast broadband reports The Press. Communications Minister Steven Joyce yesterday set out details for the broadband plan, which would see 75 % of NZ homes wired up with fibre-optic cable within 10 years. The Government would set up a new Crown-owned company that would let regional tenders to lay fibre to homes, businesses, schools and healthcare facilities in 25 cities. Greater Wellington, Kapiti, Levin, Taupo and Masterton all make the cut. Mr Joyce said the fibre would give broadband speeds of at least 100 megabits per second. He expected the Government contribution of up to $1.5b would be at least matched by private-sector investors. The regional approach meant there might be no single price for ultra-fast broadband. Telecommunications companies would negotiate pricing with local fibre companies. Mr Joyce said the Government would soon make a further announcement on rural broadband. It has promised a separate $48 million initiative. Mr Joyce said the Government's plan differed from Labour's in three key respects: its "sheer size", the Government's investment in fibre providers instead of handing out subsidies, and its focus on fibre to the home, rather than other technologies.