KEY POINTS:
Labour will be hoping its "lots-more-of the same" broadband incentives will be more attractive than National's more weighty $1.5 billion fibre-optic rollout.
The telecommunications industry and its users face an election that will decide two very different futures for broadband in this country.
The Government policy is a large-scale expansion of previous schemes for broadband projects spending $340 million over five years.
Communications and Information Technology Minister David Cunliffe says that the second five years would be likely to deliver more than the first.
It will see money allocated from a contestable fund from the Ministry of Economic Development.
It will allocate funding for different types of broadband services, such as mobile phones, ADSL and wireless technology.
At $340 million the commitment marks a massive investment in broadband but pales compared to the $1.5 billion investment suggested by National.
Cunliffe said the Government scheme was practical whereas National's was linked to electioneering.
He said the new $340 million over five years would focus attention on areas where it was needed for productivity rather than widespread consumption.
Telecommunications Users Association chief executive Ernie Newman said he had been surprised by the Government approach. "It is good that real money has been allocated. But it is probably not as much money as one would have hoped," he said.
He said that TUANZ was concerned at the complexity of the process for applying for money allocated under the Broadband Investment Fund.
"People applying for projects in August will get an answer by June of the next year. We're not going to be very comfortable that it takes the Government a year to decide whether a project goes ahead.
"The Government scheme particularly focused on rural people and we think that is a good move."
The two schemes are very different, says Newman.
"The National Party fibre optic is more of a big top-down national project where this is one that is driven by communities with lots of little projects.
"But there is not a lot of vision attached to this one and we had been expecting that there would be," he said.
Telecommunications analyst Rosalie Nelson said the Government approach had recognised the potential for unforeseen events in major infrastructural projects.
Down to the wire
* The Government broadband policy centres on a a new contestable fund.
* The fund will allocate $250 million over five years.
* It will extend broadband to businesses and key users in health and education.
* A further $75 million over five years will be allocated for broadband to reach rural areas.
* In a one-off payment the Government is giving $15 million for a new international cable giving New Zealand a second broadband link overseas.
