Listed companies Telecom and Auckland-based Vector appear likely to go head-to-head on fibre access as part of the Government's plan to get fibre to most New Zealand households.
Vector, one of the largest owners and managers of multi-network infrastructure in New Zealand, has gathered around it a network of regional companies, including Dunedin-based Aurora Energy.
The New Zealand Regional Fibre Group stretches from Northpower, in Northland, to PowerNet in Invercargill.
Vector chief executive Simon Mackenzie said the 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 leapfrog 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."
Telecom also released its plan to meet the Government's fibre plan by promising that every school and hospital would be connected to fibre by the second school term of 2012.
Chief executive Paul Reynolds said New Zealand faced challenges unlike any other nation.
"Throughout our history, we've had to be innovative, intelligent, make the most of what we have and not waste a cent. The fibre challenge is no different."
Telecom's proposal would build on that tradition and create a platform that would secure an ultra-fast broadband future for New Zealand.
In addition, prices would be set so that Telecom would not make a profit from the Government component of any investment. All of the value would be returned to the nation, he said.
Central to both of Telecom's proposals was the ability to connect fibre to 2000 schools and all hospitals in the North and South Islands within two years of work starting. The remaining 600 schools would be connected six months later.
An ultra-fast broadband fibre network would be integral to every child's education within two years, opening up opportunities for children to lean and communicate across the world no matter where they were in New Zealand.
"This is also a strategically smart route to take as schools can then form local `broadband hubs', greatly increasing the opportunity for rolling out ultra-fast broadband into rural New Zealand."
It would enable a reach that would be equal to the best broadband deployments in the world, Dr Reynolds said.
Under Telecom's proposals, the 75% fibre coverage area would also include places such as Queenstown, Greymouth, Rangiora, Gore and Waiheke Island.
Telecom's proposals were a combination of building on the 23,500km of fibre optic cable already in the ground and integrating the Government's $1.5 billion investment with Telecom's existing plans to extend the reach of fibre to more New Zealanders, he said.
However, Mr Mackenzie said the Regional Fibre Group believed the most effective means to achieve the aim of the Government was 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."
The submission from the group had focused on two key areas:
• That the funding model needed to provide a commercial return for investors.
• The need to ensure rapid and maximum fibre update - in particular that a market structure was created with low barriers to entry enabling open service competition to all segments of the market resulting in maximum customer choice.
Telecom also provided two options:
• Co-ordinating Government investment with Telecom's current fibre network and future fibre plans to deliver the maximum amount of fibre.
• Creating a national network of ducts owned by a Crown fibre network company, to which all network and service providers would have open access.
Dr Reynolds said both options would provide the fastest possible return to New Zealand and give a national solution that focused on the services people received, not just the infrastructure or technology.
Federated Farmers welcomed Telecom's fibre proposals because it provided what the federation had sought - fibre infrastructure deep into the rural hinterland.
"By delivering fibre infrastructure to every rural school within three years, Telecom has identified and resolved what rural New Zealand now needs - high speed nodes for rural New Zealand to access," federation telecommunications spokesman Donald Aubrey said.
Farmers did not expect fibre optic cable to every woolshed in every party of the country, but they wanted the infrastructure that would allow connection to ultra fast broadband.
"Telecom's plan brings fibre to rural New Zealand and the rest is up to rural folk.
"That doesn't faze us, as it provides and even playing field with urban New Zealand."
• At a glance
The group of lines companies and local fibre companies formed to support the Government's plan of introducing ultra-fast broadband to New Zealand is:
Aurora Energy: Dunedin-based electricity lines business serving the Dunedin, Coastal Otago and Central Otago communities. Aurora has developed Flute Network, an emerging open-access fibre-optic network located within the CBD areas of Dunedin and Queenstown.
Christchurch City Networks: Owns a fibre network of more than 100km.
Network Tasman: Operates the electricity distribution network in the wider Nelson and Tasman areas as well as the regional fibre-optic network thelink.
Northpower: Expanded from a Northland-owned-and-operated electricity distribution network to become one of the largest contracting service providers in New Zealand.
PowerNet: Joint-venture asset management company that manages and represents the three electricity network owners, Electricity Invercargill, The Power Company and Otago Net Joint Venture.
Unison: The power lines company that delivers electricity to businesses and homes across Hawkes Bay, Taupo and Rotorua.
Vector: One of the largest owners and managers of multi-network infrastructure in New Zealand.
Velocity Networks: Operator of the Hamilton fibre network providing an ultra-fast open-access broadband network across Hamilton city.
WEL Networks: Owns and manages the electricity infrastructure around and to the north of Hamilton.
