Broadband fuels growth
Fibre network takes a lead role in creating jobs
The communications sector is the fastest growing i ndustry in Whangarei — thanks in large part to the district’s lead role in the national rollout of Ultra-fast Broadband.
In a report by economic information company Infometrics, the communications sector tops the list of fastest growing industries while the business and property services sector — which covers real estate and professional services associated with the building sector — recorded the biggest decline.
In the year to March 2011, the communications sector grew 10.5 per cent in Whangarei, compared to a national average of -2.2 per cent.
The sector also made the largest contribution to employment growth in Whangarei over the same period, adding 44 jobs.
Telecommunications Users Association of New Zealand chief executive Paul Brislen said much of that growth was driven by the early rollout of Ultra- Fast Broadband.
Mr Brislen said Northpower’s installation of fibre-optic cables in Whangarei had been one of the main drivers of growth in the sector.
Northpower Fibre chief executive Darren Mason said there were now about 50 people involved in building the UFB network, as well as six sub-contractor companies.
‘‘You can see how jobs have been created in the design and build of the network alone,’’ Mr Mason said.
‘‘Through extending our fibre network throughout urban Whangarei, our aim is to contribute to a local economy, one that can be as well connected as any town in NZ — with instant communications access to national and international markets.’’
However, not everyone in the communications sector agrees that the UFB rollout is the main driver of growth.
Hayden Simon, managing director of Whangarei based internet service provider Uber Group, said most UFB subscribers would have already been subscribing to internet services before fibre arrived, therefore the contribution to communications sector growth was negligible.
Uber’s customer base had doubled in the past year and had experience exponential growth throughout the recession, Mr Simon said.
‘‘The recession saw a lot of businesses downsizing, and owner operators returning to their home offices, which in turn required a fast reliable broadband connection from home.’’
‘‘More people are seeing the benefit of broadband both socially and commercially. In turn this is driving the demand and uptake of services.’’
At the other end of the economic performance scale, business and property services recorded 4.7 per cent negative growth.
The drop has been attributed to a decline in the construction industry.