Who dares wins broadband
Released 03 Feb 2011
By Don Nicolson , Federated Farmers President
Broadband is to this century what electricity was to the last. So 1.1 million Kiwis, a quarter of all New Zealanders, now eagerly await Government's decision on the $300 million Rural Broadband Initiative. But when it comes to broadband, many people will be surprised to learn that they're as rural as Footrot Flats.
There are two broadband initiatives running - the $300 million rural initiative for a quarter of the population and $1.5 billion for the 75 percent urban majority. Mathematicians will immediately spot the ‘rural' quarter is receiving $200 million less than each ‘urban' quarter. This is despite geography and despite generating 66 percent of all merchandise exports, not to mention providing the tourist backdrop. While not exactly equitable, 1.1 million ‘rural' Kiwis can thank Federated Farmers lobbying for the $300 million. Originally, it was just $48 million.
I guess the Committee for Auckland typifies the sort of thinking which risks 1.1 million New Zealanders becoming second class digital citizens in their own country. It believes cities compete and nations don't. It also believes that cities are highly productive drivers in any economy. Finally, it believes cities are like Joanna Lumley, absolutely fabulous. It's also short-sighted. Cities are unsustainable without country's food, fuel, electricity or exports. There seems to be a belief in policy circles that Auckland must become our ‘world city', but this is gutting people and businesses from the provinces. It's also outmoded thinking in the digital era to place all our eggs in Auckland's basket. Ultrafast broadband means you base yourself virtually anywhere. Lifestyle choice becomes real.
While farmers need all of our cities, not just one city, cities seem to have forgotten they need the country. Our vision for rural broadband has Stratford on equal terms with Sunnynook. Broadband can massively advance the inventiveness of our rural communities, which has bred greats like Bill Hamilton and Richard Pearse to Lord Rutherford. Ultrafast broadband means ‘rural New Zealand' can play a full part in the global digital economy. As Conor English, Federated Farmers Chief Executive has rightly put it, "rural people are people too". Ultrafast broadband eliminates distance and helps to build not just social connectedness, but cohesiveness too.
Yet ambitious and ultrafast do not define the Rural Broadband Initiative. By 2016, I may get five megabits per second but that's upwards of 20 times less than the first deals for the urban initiative. Yet it's in rural New Zealand where your choices are either limited, costly or non-existent. While there's no market failure for broadband fibre or services in our cities, you can forget free wi-fi hotspots in Waimatua.
That's why the rural broadband envelope must be well and truly pushed because near enough is no longer good enough. Whoever wins from Torotoro Waea, FX Networks/OpenGate or ‘VodTel', that surprising alliance of Telecom and Vodafone, we want a step-change well beyond the minimum. 1.1 million Kiwis need to get a lot more services from a lot less cash. That demands not just fibre but ultrafast wireless which can evolve quickly. It demands reach and capacity to handle hundreds of simultaneous ultrafast connections like what's happening in India, China and Australia. It demands delivery now and not in six year's time. The last thing we want is a new taxpayer funded monopoly.
Rural broadband will literally define the next 25 years of development in New Zealand. It's that important. It's why we hope Government is truly ambitious rather than playing it too safe. To quote the SAS' motto, "Who Dares Wins"
