Vodafone proposes NGN plan

21 May 2009

Vodafone New Zealand has submitted a proposal to the Ministry of Economic Development (MED) for the government’s plan to install a national next generation network (NGN), Stuff.co.nz reports. Vodafone’s white paper suggests a co-investment model, combining public and private investment to fund a new network business, dubbed FibreCo. Vodafone said, ‘This idea assumes [industry-wide agreement] that we will not accept moving from a copper access monopoly to a fibre access monopoly.’ Vodafone’s plan calls for itself, Chorus – Telecom New Zealand’s network arm, and TelstraClear to put their network assets into the new business that would be jointly owned by the trio and the government, which would invest through its NZD1.5 billion (USD906 million) broadband fund. FibreCo would then provide wholesale services to its shareholders, and its shareholders would compete in retail markets.

As reported by CommsUpdate on 28 April, Telecom New Zealand has already handed the government its own proposal for the use of the government’s broadband fund, suggesting that investment should be channelled into Telecom’s existing infrastructure, rather than spent on deploying a new network.