CFH announces shortlist and negotiations for first stage roll-out of UFB
Marking an important step in the roll out of the Ultra-Fast Broadband (UFB) Initiative, Crown Fibre Holdings has shortlisted 14 parties following a review of the refined proposals received in August.
From this shortlist, Crown Fibre Holdings (CFH) has selected three parties for prioritised negotiations. The three bids, representing a significant portion of the UFB build, are:
- Alpine Energy (Timaru);
- The Central North Island Fibre Consortium (Hamilton - including Cambridge and Te Awamutu - Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa); and
- Northpower (Whangarei).
"These three parties have displayed the best proposals including a combination of access prices, funding provisions, industry experience and financial backing," said CFH Chairman Simon Allen.
"Their approach best met the Government’s UFB objectives. UFB should lead to exciting consumer product offerings as well as enabling increased productivity for business and improving service delivery in health and education. CFH believes these respondents can drive strong uptake and offer competitive access prices that providers of retail services will find attractive.
"On the basis that CFH successfully concludes binding offers with these parties, the Government and its partners will be bringing fibre to a significant part of New Zealand, which marks a real milestone for this initiative.
The remaining shortlisted parties will continue in the partner selection process.
"CFH will be having further discussions with the other shortlisted parties, and as a consequence of those discussions will elect other parties to negotiate with to meet the balance of the UFB target," said Mr Allen.
"All shortlisted parties remain important contenders for future negotiations of binding agreements. CFH is open to either a Telecom, New Zealand Regional Fibre Group solution, or some form of combination for the balance of the UFB project."
The party that has not been shortlisted at this stage is Canadian-based Axia NetMedia. Mr Allen said that this party’s bid included certain elements that were not part of the Government’s UFB policy.
"I am pleased to confirm that CFH is well on track to make recommendations for binding offers for initial investment partners to shareholding Ministers in October 2010, and to commence the roll-out of UFB before the end of the year," said Mr Allen.
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Summary of Respondents
Shortlisted and "elected for" Negotiation:
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Alpine Energy Ltd covering Timaru
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Central North Island Fibre Consortium. This is a consortium between WEL Networks Ltd, Waipa Networks Ltd and the Hamilton Fibre Network, and covers Hamilton (including Cambridge and Te Awamutu), Tauranga, Tokoroa, New Plymouth, Hawera and Wanganui
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Northpower Ltd covering Whangarei
Shortlisted:
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CityLink Ltd covering Wellington Region including the Hutt Valley and Porirua
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Central Fibre Consortium. This is a consortium between Counties Power Ltd, Eastland Group Ltd, Horizon Energy Distribution Ltd, Unison Networks Ltd, and Centralines Ltd, and covers Pukekohe, Waiuku, Rotorua, Taupo, Whakatane, Gisborne, Napier, Hastings, Palmerston North, Feilding and Masterton
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Electra Ltd covering Levin and Kapiti
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Electricity Ashburton covering Ashburton
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Enable Networks Ltd covering Christchurch and Rangiora
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Flute Network. This is a consortium between Aurora Energy Ltd, Electricity Invercargill Ltd and The Power Company Ltd, covering Dunedin, Invercargill and Queenstown
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Network Tasman Ltd covering Nelson and Blenheim
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Network Waitaki Ltd covering Oamaru
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Telecom Corporation of New Zealand Ltd covering all 33 Candidate Areas
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Vector Ltd covering the Auckland region
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Westpower Ltd covering Greymouth
Not Shortlisted
Background on Crown Fibre Holdings and the UFB initiative:
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CFH has been established to manage the Crown's investment in Ultra-Fast Broadband infrastructure over the next ten years.
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In October 2009, an Invitation to Participate was released.
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In January 2010 initial responses were received.
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Assessment of existing proposals was completed at the end of May.
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In July 2010 respondents were asked to refine their proposals, and in August 2010 refined proposals were received.
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Proposals received cover all of the 33 UFB Candidate Areas.
Media contact: Paul Clearwater 027 282 0016
NZRFG welcomes regional approach to UFB
New Zealand Regional Fibre Group members are the only organisations short-listed for ‘prioritised negotiations’ with Crown Fibre Holdings to begin building the Government-backed ultra-fast broadband network.
Five electricity lines and fibre companies within the nationwide lines and fibre collective who are represented in three UFB bids, have this morning been short-listed for ‘prioritised negotiations’ by CFH.
Those selected by CFH are Alpine Energy (Timaru); the Central North Island Fibre Consortium comprising WEL Networks, Velocity Networks and Waipa Networks (Hamilton - including Cambridge and Te Awamutu - Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa); and Whangarei’s Northpower.
The announcement moves the NZRFG a step closer to playing a pivotal role in shaping the delivery of fibre-based communications services to New Zealanders
Pending the outcome of negotiations with Crown Fibre Holdings around the ultra-fast broadband initiative, the members may well be partnering with CFH within a matter of months to begin urban fibre builds in major pockets of the North Island and South Canterbury by the end of the year.
Alpine Energy’s CEO Andrew Tombs says success in the forthcoming negotiations will result in strong economic and social benefits for South Canterbury.
“For us this is great news because not only does it provide a commercial option for Alpine and its shareholders, I see this as a very strong social and economic enabler in years to come,” says Mr Tombs.
Northpower fibre manager Darren Mason says “the community-owned company intends to get the UFB build underway in Whangarei as soon as possible. This new initiative will be revolutionary because as it stands our existing fibre network is already spurring the development of new service providers and driving increased efficiencies for local businesses.”
“With the network speeds people are now accessing on our fibre, they are able to download information in seconds and transfer large data files with ease and that is great for a region like Northland,” says Mr Mason.
Mr Mason says people need only consider what life would be like without power to gain an insight into what innovations will develop on a fibre platform.
“To think that Whangarei could be at the forefront of a fibre network build, which really is a form of future-proofing New Zealand’s communications infrastructure, is very exciting.”
Meanwhile, WEL’s Julian Elder says the merits of the NZRFG’s locally owned, regionally focussed approach to communications infrastructure has effectively been endorsed by the CFH’s short-listing and prioritisation of specific regions for fibre network builds.
He also is looking forward to progressing negotiations and says all NZRFG members remain willing and able to begin network builds now in an effort to bring fibre-driven broadband speeds of 100Mbit/s to as many New Zealanders as possible.
“This will be a massive step-change for our economy and the regions stand to benefit immensely as these networks grow. Fibre is the future in the communication landscape,” says Dr Elder.
ENDS
Andrew Tombs
Chief Executive Officer
Alpine Energy Limited
PH: 03 687 4300
FAX: 03 684 8261
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Darren Mason
Fibre Manager
Northpower Limited
PH: 09 430 1803
FAX: 09 430 1804
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Dr Julian Elder
Chief Executive Officer
WEL Networks
PH: 07 850 3152
FAX: 07 850 3211
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Steve Macmillan
Public Affairs Manager
New Zealand Regional Fibre Group
www.nzrfg.co.nz
PH: 09 978 7660
FAX: 09 978 7503
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Editor’s Notes:
The NZRFG is a group of regional operators including lines companies and local fibre companies, which has come together to support the Government’s efforts to introduce ultra-fast broadband to New Zealand. Members include Alpine Energy, Aurora Energy, CityLink, Counties Power, Eastland Group, Electra, Electricity Ashburton, Enable Networks Ltd, Horizon Energy, Network Tasman, Network Waitaki, Northpower, PowerNet, Unison, Vector, Velocity, Waipa Networks, WEL Networks and Westpower.
