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Ministry of Economic Development Newsletter March 2010
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Ministry of Economic Development



Information & Communication Technologies November 2009 Newsletter


General

Ultra-fast Broadband Initiative: Government now calling for partners
The government is now calling for partners in its ultra-fast broadband initiative, which will see the government investing up to $1.5 billion in open-access fibre infrastructure promising speeds of at least 100 Mbps downlink (and 50 Mbps uplink) to 75 percent of New Zealanders within the next ten years. The expectation is that the private sector at least matches the government’s investment.

The government’s co-investment model
The government’s proposal sets out an innovative commercial model for co-investment with private sector partners in “local fibre companies”, which will deploy, own and operate the open access network in a given coverage area.

The model is designed to address a key economic problem deterring private investment in ultra-fast broadband networks – the risk of uncertain uptake.  Under the commercial model, the Crown shoulders a significant portion of that risk, with the partner required only to invest in the network as customers connect.

In return, the private partner will meet the local fibre company's establishment costs and shoulder the majority of the deployment and execution risk – matters that the private sector is best placed to manage.

Partner selection process
The requirements and parameters of the partner selection process are set out in the Invitation to Participate (ITP) document. 

While not mandatory, persons intending to participate in the partner selection process should notify the Ministry of Economic Development of their intention by Friday, 13 November 2009

Final proposals must be lodged by Friday, 29 January 2010.

Crown Fibre Holdings
Responses to the ITP will be evaluated by newly-formed Crown-owned company Crown Fibre Holdings Limited, which will operate the contestable partner selection process and manage the government’s investment. 

Crown Fibre Holdings will negotiate one or more investment proposals and will be responsible for deciding on the proposal(s) to pursue, with the approval of shareholding Ministers.

Crown Fibre Holdings is chaired by Simon Allen, a former Chair of NZX and highly regarded investment banker who built ABN AMRO New Zealand from scratch.  Mr Allen is joined on the board by Andrew Body, Miriam Dean QC, Dr Murray Milner and Keith Tempest.

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Government extends time for submissions on facilitating broadband paper
The government has extended the time available for interested parties to make submissions on the ultra-fast broadband complementary measures discussion document.

The discussion document outlines measures being considered to facilitate the deployment of broadband infrastructure by local fibre companies and other telecommunications companies. 

"These measures will be instrumental in the successful roll-out of ultra-fast and high-speed broadband infrastructure.  I'm keen for stakeholders to engage as fully as possible with the proposals and provide well thought out suggestions and feedback. 

"In this context, I have decided to provide more time for submissions," said Communications and Information Technology Minister Steven Joyce.

Interested parties now have until 27 November to make a submission.  Submitters will also have the opportunity to make cross-submissions until 11 December.

Presentations
The Ministry of Economic Development hosted workshops in Auckland, Wellington and Christchurch in the week of 12-16 October. Presentations from those workshops are now available on the Ministry’s website.

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The future of the telecommunications relay and video relay services
The Ministry of Economic Development is currently seeking feedback on various issues related to the future of the Telecommunications Relay Service (TRS).

The TRS enables members of the hearing and speech impaired communities to communicate with standard voice telephone users by providing a number of different communications services. A recent addition to these services was the Video Relay Service (VRS), which has been trialled since June 2009 but will now likely continue for a further 12 months due to an increase in available funding.

Particular issues on which the Ministry would like to receive commentary include the value of the relay services, the VRS trial, possible alternatives or complements to the current services and funding mechanisms for these services.

Submissions on the discussion paper close at 5.00pm Wednesday 16 December 2009.

Written submissions may be sent by email (preferred option) to relay.service@med.govt.nz or post your written submission or New Zealand Sign Language submission on VHS tape or DVD to TRS Review, ICT Regulatory Group, Ministry of Economic Development, PO Box 1473, Wellington 6140.

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New Zealand participates in ITU World Youth Forum
Two New Zealand university students recently returned from a youth forum hosted by the International Telecommunication Union (ITU) held in Geneva.

Denise Dube of Otago University and Stephen Smith from the Auckland University of Technology were selected by the ITU to represent New Zealand following a nominations process managed by the Ministry of Economic Development.  An ITU fellowship scheme covered their travel and living costs for participating.

The youth forum was held as part of the ITU Telecom World 2009 event. It brought together university students aged between 18 and 23 from around the world to acquire first-hand knowledge of information and communication technologies and to discuss how that knowledge can be applied to their national and community development plans.

A highlight for Stephen was hearing about the different challenges countries face in the quest to become connected, and in particular, the focus shown by the majority of UN member states to ensuring children and schools have access to high-quality, high-speed Internet.  The forum agreed that all schools had to be brought up to speed, otherwise the next generation economy would fall behind. 

Denise remarked on the faith the organisers/ITU had in the students to make a difference. All the addresses were about what the participants had the potential to do, to become and to improve.  Each participant was given a challenge – to take a chance and see just how much could be accomplished.

Best wishes to Stephen and Denise for their future endeavours. We are sure they will be a positive force for change using information and communication technologies.

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