By ADAM GIFFORD
Fonterra subsidiary Fencepost.com is seeking expressions of interest from companies willing to take on Telecom for rural subscribers.
Acting chief executive Mike Ryan said rural users were fed up with the service they were getting from Telecom, which had a monopoly in last-mile access over most of the
country.
The Fencepost site, set up to give farmer subscribers information and applications they can use to increase productivity, was specially developed to overcome problems of low bandwidth in the countryside.
"The feedback we are getting from users is they are having a bad experience of the internet, full stop," Mr Ryan said.
"It's hard to get on and the experience is not pleasant, which leads to low use."
Fencepost.com made submissions to the Government's telecommunications inquiry 18 months ago, and started talking seriously to potential technology partners six months ago.
"We have five very good proposals offering a range of services," he said. "Before we make any recommendations, we want to be sure we are aware of everyone who is out there."
He would not name the five, nor was he able to say what funding Fonterra was prepared to put into the network.
Rating agency Hitwise says Fencepost.com accounts for more than half the traffic to agricultural sites, with two other Fonterra sites, RD1.com and NZ Dairy Group, below 10 per cent.
Ihug director Tim Wood confirmed his company was talking to Fencepost, and already had kits for its Ultra satellite service on sale in Town and Country stores.
Walker Wireless chief executive Bob Smith would not confirm Fencepost.com's interest, but said his company "is talking with a number of partners interested in broadband access".
Walker is about to test a new wireless communications technology which it hopes to roll out later this year.
Broadcast Communications, TelstraClear and Telecom itself could also be possible suitors, although a TelstraClear spokesman said he was unaware of any proposals.
Fencepost
Rd1
Ihug
Walker Wireless
