And the man linked to one of America’s earliest fibre to the door networks says the National Government is wise in its choice of minimum broadband speeds of 100Mbit/s in urban centres across the country.

US-based Kim Kersey is the man behind the Jackson Energy Authority fibre network, one of America’s first fibre builds. The $75 million project has so far taken fibre to the door of over 10,000 premises with the company serving 16,000 customers and representing nearly 50% of homes passed by the fibre network.

He believes building in 100Mbit/s upload and download capability from day one is the right move as it will become the international standard within three years.

“Whether it is needed today is not so much the point. For some users, like a small business owner, having that capability available now is good. Having the speed available means you can throttle up or down as you need,” says Mr Kersey.

“Some might argue that it is an additional cost to the service provider in supporting the backhaul but building to that specification from the outset is a smart investment because you then have your network positioned for the future.”

“The whole essence of what the New Zealand Government is trying to do is provide a competitive service to the existing telecommunications broadband network because competition breeds innovation, new products and services and better pricing. The only way that level of competition can truly be implemented is by having another entity provide that service.”

Mr Kersey believes electricity lines companies are the best fit for building fibre networks because they have extensive assets and understand infrastructure.

“The lines companies are owned by the ratepayers so they have the local interest and local investment in mind – backed by substantial community involvement.”

Mr Kersey has just completed an appraisal of Northpower’s layer 2 fibre network and says the company has laid a solid platform from which it can substantially expand its fibre business.

He is also visiting fellow New Zealand Regional Fibre Group members Flute Network (Aurora Energy and PowerNet) and Unison, both of which have fibre networks underway, before returning to America this week.

“The Jackson Energy Authority is a multi-utility company and we recognised that fibre to the door is the way the world was going. It just makes good business sense to do things right from the start. We were two years in the planning and proceeded to build 20% of our network (a triple-play broadband service) underground but it made sense to utilise our pole network for cost efficiencies – just like it will for New Zealand,” says Mr Kersey.

The New Zealand Regional Fibre Group says it can meet the Government’s objectives in the ultra-fast broadband (UFB) initiative.

The 19-strong group has today submitted a number of closely aligned proposals for consideration under the Government’s $1.5 billion ultra-fast broadband initiative.

Accompanying its bid are numerous letters of support from many of New Zealand’s leading telecommunications providers, councils and service providers.

Collectively, the NZRFG says it can deliver an exceptional fibre to the door broadband solution.

It wants to partner with the Government to create extensive ultra-fast fibre broadband networks around the country and hopes to begin work on the project this year.

NZRFG bids cover approximately 80% of the country and the group is proposing to extend out beyond the 33 main centres the Government has highlighted as priorities for ultra-fast fibre broadband.

The NZRFG believes it meets all Government aims within the UFB initiative through a regionally focused but nationally coordinated approach.

Two of the NZRFG bids are consortium-based and many others incorporate regional collaboration between members.

The consortium proposals are from Waikato-based WEL Networks (the combination of WEL, Waipa and Velocity Networks and Hamilton Fibre Network), plus the Otago and Southland joint venture partnership of Flute Network (Dunedin and Central Otago’s Aurora Energy, along with Southland’s Electricity Invercargill and The Power Company). Aurora Energy and the management company representing the other two Flute partners, PowerNet, are NZRFG members.

However, all other South Island NZRFG members - Enable Networks, Network Tasman, Electricity Ashburton, Alpine Energy, Network Waitaki and Westpower – have expressed openness in working together to provide the best fibre solution for the Government.

NZRFG founding member Vector hopes to secure the Auckland region contract - where it already has substantial investment in fibre.
Northpower has also submitted a bid for the Northland region.

Meantime, the North Island trio of Unison, Horizon Energy and Eastland Group have all expressed interest in rolling out the initiative across their geographic areas and are exploring ways to work together to provide a more efficient and effective deployment.

CityLink and Electra have pitched further proposals to establish fibre networks in the Government’s preferred candidate areas in the lower North Island.

The Government has highlighted dozens of towns and cities from Whangarei to Invercargill as priority areas in which to establish fibre networks and they include the likes of Wellington, Masterton, Kapiti and Horowhenua.

Communications Minister, Hon Steven Joyce wants 75% of New Zealanders to have access to fibre to the door within 10 years. He is also planning to front with $300 million to ensure a fibre spread into rural New Zealand.

However, the Government must first select partners to work with and the NZRFG wants to be an integral part of that mix.

The group has said for some time that as a collective of 19 regional lines and fibre companies and with extensive electricity (and in some cases fibre) infrastructure already in place, it is well placed to add fibre to the mix - a factor the Government has been responsive to.

Ten members have already embarked on establishing fibre networks but say a Government funding boost would allow that process to be fast-tracked.

The NZRFG has consistently stated a desire to work with the Government and achieve the objectives set out within the ultra-fast fibre broadband initiative.

NZRFG members say New Zealand is long overdue for an overhaul of the traditional copper network, through the provision of a true open access fibre network that facilitates extensive competition within our communications infrastructure and provides far superior broadband speed, consistency and capacity.
 

Entitled ‘Smart’ Meters in New Zealand: Is the NZ Electricity Industry’s rollout as ‘smart’ as it needs to be?, this paper seeks to gains support for a widened focus on Advanced Meter Infrastructure (AMI) to ensure that consumers derive maximum benefit from smart meter installation in the long term.

You can read the briefing paper by clicking the link below:

• 'Smarter' Meters in New Zealand (PDF)

With Government backing, the consortium is intending to invest in an ultra-fast fibre optic broadband network throughout the Southern regions - one that is capable of 100 Mbit/s speeds.

Flute Network is a joint venture partnership between Dunedin and Central Otago’s Aurora Energy, along with Southland’s Electricity Invercargill and The Power Company.

Aurora Energy and the management company representing the other two Flute partners, PowerNet, are part of the New Zealand Regional Fibre Group, a collective of 19 lines and fibre companies stretching the length and breadth of the country.

Combined, the NZRFG membership can provide fibre networks to the Government’s preferred population base in 33 towns and cities, while extending out into rural areas also.

Grady Cameron, CEO of Aurora, says Flute is currently developing a proposal to co-invest with the Government to deploy and operate fibre optic infrastructure as part of the Crown’s ultra-fast broadband initiative. The joint bid is due at the Ministry of Economic Development in Wellington on January 29.

The Government last year signalled a desire to front with $1.5 billion and partner with private sector parties to drastically improve the nation’s chronically under-invested broadband infrastructure.

Flute’s creators believe New Zealanders have put up with sub-standard services from traditional telecommunications suppliers for too long, something that has unnecessarily stifled economic productivity.

Combined, the Flute partners boast a vast reach to over 150,000 customers from Bluff to Wanaka, and including Queenstown, Invercargill and Dunedin, through electricity networks alone.

The companies say, if successful in the bid, they plan to remove Southland and Otago’s reliance on traditional telco network providers. Flute wants to deliver a long overdue step change in broadband capability needed to move the region forward.

Flute’s formation follows that of another NZRFG collective just before Christmas – the Waikato-based WEL consortium.

Having previously stated a desire to become the Government’s preferred provider of regionally based, nationwide fibre solutions, the NZRFG says the Government can expect bids from a number of members – some consortium driven and others individual.

The Government wants 75% of New Zealanders to access ultra-fast fibre networks within 10 years; a target the NZRFG says it can comfortably reach given its membership covers an even greater percentage of the population.

Flute believes it has the substantial regional infrastructure needed to quickly and effectively rollout a fibre network to much of the South.

Mr Cameron says that is the benefit of electricity lines companies deploying fibre.

“We have comprehensive lines networks in place already and are more focused on regional economic development, spill-over, social and environmental outcomes than those traditional telecommunication players, whose motivation is more purely commercial,” says Mr Cameron.

“What people must remember is that the UFB initiative is much broader than telcos. Infrastructure providers like Aurora, The Power Company and Electricity Invercargill are ideally placed to add fibre to our existing electricity networks. Our assets are critical to the regions and so broadly spread throughout these areas that it makes sound commercial sense to add fibre optic cabling to our poles or underground ducting.

PowerNet CEO Martin Walton says the Flute approach to fibre will be regionally wide, not just focused in urban areas, ensuring the rural sector is well catered for with substantially faster broadband speeds.

“In an infrastructure sense that means we’ll be focusing on urban fibre, regional backhaul and rural hybrid deployments,” says Mr Walton.

“No one can deny that together we are a safe pair of hands to look after the long-term telecommunications interests of consumers in our regions – and we have plenty of local support for this. It is very much complementary to current regional digital strategy and broadband initiatives.

“We want our customers to make use of applications like real-time video conferencing but that can only happen with acceptable broadband speeds. Currently that is not a reality for most but fibre will change that,” says Mr Walton.

ENDS

Grady Cameron
CEO
Aurora Energy
M: 027 499 1122

Martin Walton
CEO
PowerNet
M: 021 337 571

Editors Notes:
The NZRFG is a group of regional operators including lines companies and local fibre companies, which has come together to support the Government’s efforts to introduce ultra-fast broadband to New Zealand. Members include Alpine Energy, Aurora Energy, CityLink, Counties Power, Eastland Group, Electra, Electricity Ashburton, Enable Networks Ltd, Horizon Energy, Network Tasman, Network Waitaki, Northpower, PowerNet, Unison, Vector, Velocity, Waipa Networks, WEL Networks and Westpower.
 

The NZRFG is a group of regional operators, including lines companies and local fibre companies, which has come together to support the Government’s efforts to introduce ultra-fast broadband to New Zealand. Members include Alpine Energy, Aurora Energy, CityLink, Counties Power, Eastland Group, Electricity Ashburton, Enable Networks Ltd, Horizon Energy, Network Tasman, Network Waitaki, Northpower, PowerNet, Unison, Vector, Velocity, Waipa Networks, and WEL Networks.

Group Spokesman, Simon Mackenzie, said that the NZ Regional Fibre Group brought together the collective wisdom and experience of several different regional operators with expertise in open access networks.

“We welcome the opportunity to submit on the Government’s Broadband Investment proposal which will leap frog New Zealand to world class broadband.

“With our respective capabilities and existing assets in electricity and fibre networks as well as associated rights of way, we believe that we are very well placed to help realise the Government’s bold vision of delivering fibre to the premise for New Zealanders.

“Our view is that the most effective means to achieve this vision is through a nationally aligned, regionally based model based on transparent, open access principles. Our membership pretty much spans most of New Zealand ensuring extensive broadband coverage.”

Mr Mackenzie said that in its submission the group had focused on two key areas:
(1) That the funding model needs to stack up commercially to provide returns for investors, and
(2) The need to ensure rapid and maximum fibre update – in particular that a market structure is created with low barriers to entry enabling open service competition to all segments of the market resulting in maximum customer choice.

“There is still a great deal of detail to be considered, to which the group can add significant value through its united collaboration and the leveraging of existing expertise.”

Members of the New Zealand Regional Fibre Group include Aurora, Vector, Northpower, Waikato based WEL Networks, Unison, PowerNet, Christchurch City Networks, Network Tasman, and Velocity Networks.

As well as a collective submission to the Government on its Broadband Investment Initiative, Aurora has provided an individual submission.

Chairman Ray Polson advised that the board had been considering options over recent months, after John Walsh indicated to the board last year that he intended to retire during 2008-2009, at a time convenient to the board and his replacement.

Mr Walsh noted that CEO replacements typically take three to six months, with the longer timeframe being likely due to DELTA's diverse business opportunities. Accordingly, it had been agreed that the recruitment process would commence in the second half of 2008.

Mr Walsh has been CEO of DELTA and its two previous organizations (DCC Municipal Electricity Department, and Dunedin Electricity Ltd) since 1989 - a period of 19 years. "It's time for a change for me and for DELTA" he said.

Mr Polson noted that over that period, Mr Walsh had rationalized the previous electricity organizations down from a size of 333 full-time-equivalent employees in 1989 to 126 in 1996, and had then led the creation of DELTA, the broadening of focus to non-electrical infrastructure and DELTA’s development to its present size of 560 employees. "His knowledge and experience will be greatly missed" he said.

Aurora has set aside $400,000 of funding over the next two years which will be used to assist both the Otago Clean Air programme and also the Healthy Homes programme. The Healthy Homes project involves retrofitting insulation to existing homes so that a much healthier environment results for occupants.

Mr Polson advised that the funds will be spent approximately 50% in the Central Otago area and 50% in the Dunedin area. EnergySmart is coordinating the programmes on Aurora's behalf.

Ray Polson
Chairman, Aurora Energy Limited

For more information on these programmes, click on the links below:
Clean Heat Clean Air Assistance Programmes Brochure & Application Form (PDF)