Telecommunications

Most investment in New Zealand's telecommunications infrastructure is undertaken by private sector participants in a competitive marketplace, with the government's role mainly confined to that of a regulator (although some telecommunications players, such as Kordia or the Research and Education Advanced Network NZ, are Crown-owned companies).

Development in the telecommunications sector reflects the pace of technological change and is fast-moving and dynamic. It is currently undergoing a fundamental shift from an analogue to a higher-speed digital infrastructure. As such, telecommunications, IT and broadcasting are no longer separate but converging digital industries delivering voice, video and high-speed data.

Vodafone's major upgrade plans will see its ‘Third Generation' mobile network rolled out to 97% of the population by 2010. This will deliver speeds of 10-20 megabits per second (Mbps) and may directly benefit some rural customers who will miss out on Telecom's broadband upgrades.

As part of the regulated Undertakings agreed through the separation of Telecom, Telecom's network arm Chorus has committed to upgrade its network (through cabinetisation) to ensure that all towns with a population of 500 or more will receive broadband speeds of between 3-7 Mbps by 2011.

NZ Communications is spending around $200 million in the first stage of its network build and currently has RMA approval for 395 cell sites.[18]It has built networks in the three main centres and is using Vodafone's network elsewhere for roaming.

There is likely to be strong private investment in the telecommunications sector over the next five years:

• Telecom will invest $1.4 billion in its cabinetisation upgrades and a further $300 million in Third Generation mobile upgrades
• Vodafone will invest $500 million in the expansion of its Third Generation mobile network, and
• NZ Communications will spend at least $150 million in support of its launch in the mobile market.

In 2008, the Government announced that it would invest $1.5 billion in Fibre to the Home. Its goal for broadband investment is to accelerate the roll-out of ultra-fast broadband to 75% of New Zealanders, concentrating in the first six years on priority broadband users such as businesses, schools and health services, plus green field developments and certain tranches of residential areas. Government investment will be supported by private sector investment, and directed at open-access infrastructure.