The rollout of ultra-fast broadband (UFB) to more than 20 towns in Otago and Southland cannot come soon enough for some businesses.
The Government’s announcement yesterday that access to UFB would be extended to an estimated 50,000 people in the region is being hailed as crucial to its future prosperity.
One of the centres standing to benefit is Arrowtown, which continues to labour under dial-up broadband despite hosting 650,000 visitors a year and boasting an abundance of creative businesses.
Arrowtown Promotion & Business Association project co-ordinator Sue Patterson said its tourism and service-based businesses relied heavily on the internet, yet the existing slow speeds inhibited their ability to grow.
Businesses such as real estate firms, retailers, graphic designers and architects were particularly affected.
Arrowtown councillor and businessman Scott Stevens said the township’s broadband was so slow that at certain times of the day, it virtually stopped working.
The extension of UFB to the township — expected to start this year and be completed by 2021 — would be as transformative for its businesses and residents as Queenstown’s international airport had been for the wider district, Mr Stevens said.
Communications Minister Simon Bridges said the $300million second phase of the Government’s national UFB programme would bring faster broadband to 151 towns and 43 suburban fringe areas, boosting growth and diversification in regional economies.
"This means more productive businesses, improvements to health care through video-conferencing between doctors, specialists and patients, and improved access to online resources for students and teachers."
In Otago, the fibre network will be extended to 36,000 people in 16 towns or urban fringe areas, giving 80% of Otago residents access to UFB by 2024.
In Southland it will be extended to 10,000 people in five towns, giving 70% of residents access to UFB over the next seven years.
Clutha-Southland MP Todd Barclay said that when the build was completed, every major town in his electorate would have access to UFB.
"Broadband speed is easily one of the most common issues I see coming through my offices."
Queenstown Lakes Mayor Jim Boult said high-speed broadband was crucial for the district’s businesses, while residents and visitors expected improving connectivity.
The inclusion of Arrowtown, Lake Hayes Estate, Arthur’s Point, Jack’s Point, Wanaka and Lake Hawea in the rollout’s second phase meant most of the district’s residents would have access to faster broadband, Mr Boult said.
Cromwell will be among the first towns in the region to be connected, with completion scheduled for the second half of next year.
Central Otago Mayor Tim Cadogan said it was "great news" for the town.
"What’s good for Cromwell is good for Central Otago."
Alexandra is scheduled for 2020, Clyde for 2023 and Roxburgh for 2024.
It was "regrettable" those towns had to wait so long, Mr Cadogan said.
The council was discussing ways in which it could harness Cromwell’s fibre for other towns as a temporary solution.
"We’ve got fibre coming into Central, so we may be able to do something in the meantime."
It was unfortunate Ranfurly and the wider Maniototo were not included in the roll-out, and the council would "actively pursue" other ways of bringing fast internet to the area.