Article – Businesswire

March 31 – New Zealand’s government will establish a new Crown company to invest in broadband alongside private investors under a proposal from Communications Minister Steven Joyce.

Joyce proposes public-private investment in broadband

March 31 – New Zealand’s government will establish a new Crown company to invest in broadband alongside private investors under a proposal from Communications Minister Steven Joyce.

Crown Fibre Investment Co., or CFIC, will invest alongside private sector co-investors in regional fibre companies that will deploy and provide access to fibre optic network infrastructure in the 25 towns and cities covered by the initiative, Joyce said in a statement today.

“This model aims to provide government investment on favourable terms, while minimising government involvement in commercial operations which we believe the private sector is better positioned to direct,” he said.

The government has pledged to roll out ultra-fast broadband to 75% of New Zealanders over the next 10 years, aiming to lift the nation’s take-up of highspeed services from near the bottom of the OECD rankings and stoke economic growth.

The government will spend some NZ$1.5 billion for the roll out and is expecting private investors to stump up a similar amount. The government is aiming for an “open infrastructure” model which ensures access for all telecommunications companies.

Interested parties have until April 27 to make submissions on the proposal.

(Businesswire)

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