The four companies partnering with the Government to build a nationwide ultra-fast fibre broadband network have each got a slice of the Government’s $300 million expansion to the project.
Northpower, Ultrafast Fibre, Chorus and Enable have been awarded contracts to extend the network to 151 more towns, which Communications Minister Simon Bridges says will provide fast internet services to 85% of the population by the end of 2024. The extension initially sought to cover 80% of New Zealanders by 2022 at an expected cost of between $152million and $210million.
"Phase two of the UFB build will see fibre rolled out across all mainland regions, to 151 more towns plus 43 suburban fringe areas around the larger centres which were covered by the first phase of the programme," Mr Bridges said in a statement.
"This will provide around 423,000 additional New Zealanders in both rural and urban areas, from Ruatoria to Reefton, with access to world-class broadband."
The Government campaigned on the initial $1.5 billion UFB in 2008, which ultimately prompted Telecom Corp, now Spark New Zealand, to carve off its network business, Chorus, as a standalone entity to participate in the project. Chorus won the lion’s share of the contract, with Enable, Northpower and Ultrafast Fibre each securing smaller regions.
Separately, Chorus said it would extend UFB to another 169 regions, adding more than 200,000 households and businesses to its network. It estimates the second tranche of the build will cost between $370 million and $410 million at an average cost per household of $1500 to $1700. The first tranche of the network, which is more than halfway through, is expected to cost between $1.75 billion and $1.8 billion.
Chorus said the new deal did not change capital expenditure or dividend guidance for the 2017 financial year.
Ultrafast Fibre parent WEL Networks said its extension to 12 new communities would cost an extra $60million, taking its total investment to $450million, while Northpower’s new work in 12 towns would cost another $30million.
Mr Bridges said the second phase of UFB work would start this year, with each build area completed within a 12-month period "in order to provide as little disruption as possible".
