Government sets 50Mbps target for rural broadband by 2025

Tuesday, 6 October 2015

The Government says all but 1 per cent of New Zealanders should get broadband speeds of at least 50 megabits-per-second by 2025.

That is 10 times the current peak speed of 5Mbps targeted by its existing Rural Broadband Initiative which leaves about 2.2 per cent of the country uncovered.

50Mbps should be sufficient to stream video in 'ultra high-definition' straight to a computer or television without buffering, or to download a 10 gigabyte BluRay movie in less than 27 minutes, a government statement said.

The remaining 1 per cent of New Zealanders would be assured speeds of at least 10Mbps by 2025, Communications Minister Amy Adams said.

Telecommunications Users Association chief executive Craig Young said the lobby group wanted the Government and telecommunications firms to achieve the targets earlier if possible.

'Our only concern is that as technology changes and the demands grow, that we regularly question whether the target is still applicable or whether we should continue to raise it in line with user expectations,' he said.

Mark Ratcliffe, chief executive of Chorus, which is New Zealand's largest internet network infrastructure business, said the 50Mbps target would require 'further significant investment in fibre, and potentially wireless infrastructure'.

He indicated that might in turn require regulation that was favourable to the company.

'We think investors will … be keen to see the Government's discussion document on the post 2020-regulatory environment turned into appropriate legislation to ensure that investors see a fair return on the financial commitment implied by these bold and ambitious targets,' he said. 

READ MORE: Telco Act review begins

InternetNZ chief executive Jordan Carter said it was 'mindful of the practicalities regarding how such targets will be achieved, funded and continually improved'.

Adams said the new targets would lift the country's rural connectivity rating to 7th worldwide, up from 17th today.

The goals were announced in Christchurch, at a launch of the Government's business growth agenda.

Science and Innovation Minister Steven Joyce said the Government had a strategy to develop New Zealand into a hub for high-value and knowledge-intensive businesses that would conduct more research and development to lift innovation.