Local Government’s role in the provision of

broad band

6th March 2009

Getting the most from broadband?

• Available data shows that most broadband users are not currently willing to pay even for the faster broadband packages that are available now

– Low willingness to pay for high speed broadband

– The cost of international data capacity and “peering” is higher than many New Zealanders are willing to pay

– The cost of international capacity will need to come down for New Zealand to obtain many of the potential benefits from high speed broadband

ReportDecember 2008

Problem

Poor service Low demand

Low use of high

bandwidth applications

No vendors of high

bandwidth applications

A classic vicious cycle

Local government’s role?

Some would argue… NONE!

Operation

Local government’s role?

• Not credible!

• Outsource

• Potential BOO

Leadership

Local government’s role?

The Council as a web-enabled user of services

Advocacy

Local government’s role?

Attack the ‘don’t know what they don’t know’ dilemma

Provision

Local government’s role?

• Layer zero?

• Council cables that others can share?

• Public-private joint ventures?

• Sites for wireless

Leadership

Advocacy

Provision Operation

Local government’s role!

Council’s objectives

• There will be a choice of ubiquitous, fast broadband supplied by profitable competing telco providers

• North Shore City - the residents, businesses and the Council - will be a leader in the uptake and use of broadband services

North Shore Urban fibre network &

NEAL

A public-private joint venture BOO

• MED – Digital Strategy

• Vector Communications Ltd

• North Shore City Council

A case study

• Constructive partnership

• Highly successful

engineering project

• Well executed by all

parties

• TUANZ award winner

But…

• Disappointing uptake

• Disappointing use

What do we want from government?

• Leadership

• Multi-lateral peering at peering exchanges by all ISPs

• Downward pressure on the cost of international bandwidth

• Access to Crown contracts for regional and local network providers

• Funding to maximise the uptake of existing pilot networks

END