New Zealand cellcos propose joint rural expansion program

New Zealand’s mobile operators Spark, Vodafone New Zealand and 2degrees have submitted a joint proposal to improve rural broadband and mobile infrastructure under two government programs.

The operators have applied to be selected for the Rural Broadband Initiative Extension and Mobile Black Spot Fund programs.

If selected, the companies have committed to investing “hundreds of millions of dollars” in the project, including NZ$75 million to deploy the infrastructure, as well as opex costs, spectrum and other resources.

The operators said their proposed expenditure would more than match the government’s own planned NZ$150 million ($104.6 million) contribution to the program, which would come from the Telecommunications Development Levy.

Under the proposal, the partners would roll out around 500 new cell sites providing a 25% increase in land coverage across New Zealand, providing access to fast broadband for thousands of rural households and businesses and extending mobile coverage to more than 1,200km of state highways.

“Rural New Zealand is a key driver of our country’s economic growth and productivity and for these sectors to remain competitive they need fast broadband and mobile coverage – not just in offices, but on farms, in schools, and on the roads,” Vodafone NZ CEO Russell Stanners said.

“The combination of the Government’s RBI funding and this investment by the three mobile network operators presents a once in a generation opportunity to deliver both competitive ultra-fast broadband and world class 4G mobile infrastructure to areas of New Zealand that today have neither.”