$5 billion needed to sort out Kiwi broadband

A big pile of money and NZ broadband can catch up with the rest of the planet, says NZ Institute boss David Skilling.

A privately-funded think tank says New Zealand is being left a long way behind other countries as it waits for Telecom to develop faster broadband services.

New Zealand Institute chief executive David Skilling says Telecom is the dominant investor subject to pressures from shareholders and others not to invest any more rapidly than it is currently committed to doing.

He said the unbundling of the local loop has not changed the telecommunications landscape.

New Zealand is still reliant on Telecom but at the rate the company is going, the download and upload speeds New Zealand will achieve by 2012 will be slower than many developed countries have today.

Dr Skilling believes there is an urgent need for a new funding and regulatory model to speed up the development of a fibre-based network.

He estimates up to $5 billion needs to be invested for New Zealand to have a competitive advantage.

- NEWSTALK ZB