Telecom big winner in Govt fibre shortlist

Crown Fibre Holdings has earmarked Telecom, Enabled Networks and Flute Joint Venture as prioritised bidders for the remaining $1.15 billion rollout of government's ultrafast broadband initiative.

Telecom is the frontrunner for 25 regions, including the all-important Auckland market after earlier missing out on the first round of prioritised bids.

The country's biggest phone company offered a number of variations in its bid to tap the government funds, and will expect some regulatory relief as part of any successful deal.

If Telecom eventually wins the tender, which is still to be finalised, it will have to win shareholder approval to carve out the Chorus network unit into a separate entity.

Telecom welcomed the announcement saying it had worked tirelessly to refine its proposal to meet the needs of shareholders and Government objectives.

"We remain firmly of the belief that a structurally separate Chorus as the cornerstone of a national framework for fibre is the most efficient and effective way to deliver the Government's fibre vision and that is reflected in our proposal," chief executive Paul Reynolds said.

Reynolds said Telecom was open to partnering with other public and private sector owners of fibre assets to deliver fibre further and fast for New Zealand.

Crown Fibre chairman Simon Allen said Crown Fibre was encouraged by the proposals, which had the potential to deliver consistent access prices at attractive levels, he said.

"These three parties have provided attractive proposals to Crown Fibre, including a combination of access prices in line with those announced last week, the ability to complete the UFB build within the Government's allocated budget, as well as having industry experience and financial strength."

"This provides confidence that the complete UFB initiative can be built within the government's allocated budget."

CFH was also open to the parties partnering in their candidate areas to deliver "greater infrastructural utilisation".

"Negotiations in the next phase will be focussed on the three parties named today, as well as Alpine, but it should be noted that discussions will still continue with all respondents previously shortlisted.

These include Central Fibre Consortium, City Link Ltd, Electra Ltd, Electricity Ashburton, Flute JV for Queenstown and Invercargill, Network Tasman Ltd, Network Waitaki Ltd, Vector Ltd, and Westpower Ltd.

Allen said Crown Fibre was well on track to achieving the Government's UFB objective.

"The inaugural deployment will be commencing this week in Whangarei, so building the UFB network is now underway," said Allen.

"I look forward to negotiations progressing to extend the UFB rollout to further towns and cities as a matter of priority."

Today is also the deadline for telecommunications technology companies to register their interest in supplying the basic infrastructure to build the government-backed high speed broadband network.

Crown Fibre Holdings has called for expressions of interest from technology companies interested in supplying equipment such as fibre cable, connectors and roadside cabinets.

The companies will be shortlisted on December 20, with a request for proposals due to be issued by Crown Fibre Holdings on Christmas Eve.

- NZ HERALD ONLINE with BusinessDesk