Broadband move buoys lines firms

Lines companies and local fibre players have been buoyed by this week's backing of three separate bids to build part of the Government-backed broadband network.

On Thursday the Government's investment vehicle, Crown Fibre Holdings, said it had shortlisted 14 bids, including those of Telecom and Auckland-based lines company Vector, with Canadian network builder Axia NetMedia knocked out of the running.

With the exception of Telecom, all shortlisted companies are members of the Regional Fibre Group - a collective of lines companies and fibre infrastructure builders bidding to build broadband networks in their local areas but banding togetherto co-ordinate nationally.

Timaru-based Alpine Energy, the Central North Island Fibre Consortium covering urban areas in the Waikato, Bay of Plenty and Taranaki and Whangarei's Northpower have been given the nod for prioritised negotiations.

Regional Fibre Group chief executive Vaughan Baker said these three bids had been progressed because the parties were already building open-access, wholesale-only fibre networks now.

Paul Winton, principal at Temple Investment, said: "Telecom is seriously on the back foot."

Telecom shares closed up 2c yesterday at $2.04.