Telecom New Zealand invited to negotiations for government's broadband plan

After being snubbed out of initial negotiations, Telecom New Zealand has been asked by the government to participate in "prioritized negotiations" for its ultra-fast broadband (UFB) initiative in 25 country regions.

Crown Fibre Holdings, the government agency overseeing the build out of the UFB, said that the negotiations do not include areas--including Hamilton, Tauranga, Tokoroa, New Plymouth, Hawera and Wanganui--where negotiations have been approved with Wel Networks and Northpower.

In addition, the government is conducting prioritized negotiations with Enable Networks in the South Island city of Christchurch and with the Flute joint venture for broadband in Dunedin.

To satisfy the government's requirements to participate in the UFB, Telecom New Zealand has volunteered to structurally separate its company into two units.

Analysts said the news is a good sign that TNZ could become a big part of the UFB.

"It puts Telecom in the box seat in most of the remaining areas," Guy Hallwright, analyst at Forsyth Barr Ltd. in Auckland told Bloomberg, adding that "it is only the announcement of a preferred bidder rather than a deal so there's quite a bit of water to go under the bridge."

For more:
- Bloomberg has this article

Related articles:
New Zealand awards initial broadband plan contractors
New Zealand government to study Telecom New Zealand's breakup proposal
New Zealand's Crown Fiber whittles down fiber provider candidates for broadband plan
Telecom New Zealand advances AAPT fiber network, considers demerger
Telecom New Zealand sells AAPT's consumer division, other assets

Suggested Articles

lphabet and Google CEO Sundar Pichai announced on Monday that Google plans to invest around $10 billion in India over the next five to seven years.

Hewlett Packard Enterprise (HPE) has juiced its SD-WAN platform by buying Silver Peak for $925 million.

Comcast's investment in the development of artificial intelligence and machine learning paid off in spades during the coronavirus pandemic.