Affordable, fast broadband

NGNs run over broadband and use Internet Protocol (IP) to send and receive data. An NGN can support many services and applications over the same connection, for example, internet access, voice, EFTPOS, ecommerce, video and games.

In terms of technology, no one solution is future-proof in a fast-moving environment, but fibre-optic cable is the surest long-term option for a core network. Fibre to, or close to, the premise
is part of the long-term picture. However, there is a complementary role for a range of technologies that link to the fibre core, including satellite and wireless. Government has adopted a technology-neutral approach to broadband investment, allowing the most appropriate solution to be chosen to connect end users.

Digital Strategy 2.0 aspires to have all homes, businesses, schools, marae and farms connected to high-speed, reliable, affordable broadband within a decade. This requires significant investment from the private sector and government. Recent private investment announcements top $2.5 billion. The government’s contribution through the Broadband Investment Fund and investment in the health and education sectors adds a further $500 million for the next five years, to be matched with at least another $500 million from private investors.

Widespread broadband also implies equitable access. New Zealanders without a broadband connection are likely to live in rural areas, have lower incomes, or be older. A fast, affordable broadband service for people in rural and remote areas is an important part of delivering a fully networked world. The Telecommunications Service Obligations (TSO) already ensure that a reasonable telephone service is available to users in rural and remote areas, even where this would not be commercially viable. The government is currently reviewing the TSO to assess its role in supporting the provision of a reasonable broadband service for rural and remote users.

Very fast broadband is required to keep New Zealand research leading edge, able to connect with partners offshore and transfer large data sets in real time. This capability is provided
by the Kiwi Advanced Research and Education Network (KAREN), at speeds 10,000 times the speed of current home broadband. Without KAREN and its continued development, the New Zealand research sector would be at risk of being left out of international research consortia. Work is currently underway to explore options to extend KAREN to schools, polytechnics and libraries.

As broadcasting, telecommunications and the internet converge, telecommunications and broadcasting companies are changing their business models. For telcos, selling connection alone is no longer viable – quality content is the key to success. For broadcasters, a channel with a single programme schedule is no longer viable – content needs to be created, packaged and distributed across multiple platforms. Government is reviewing the broadcasting regulatory framework to make sure it meets the demands of a converging digital environment. A major objective of the review is to ensure that suitable competition exists in terms of access to broadcasting-like networks and content to promote economic, social and cultural outcomes.