‘Cable to nowhere’ folly
A 55 kilometre ‘‘cable to nowhere’’ in Wairoa appears to demonstrate folly in rural broadband investments, says Labour communications spokeswoman Clare Curran.
Curran likened the fibre-optic cable between Wairoa and Tuai to the ‘‘bridge to nowhere’’ built in 1936 across Mangapurua Stream in Whanganui National Park for a farming development that never eventuated.
Wairoa District Council drew attention to the cable when nominating Wairoa and Frasertown for inclusion in ‘‘UFB2’’, saying connection costs were prohibitive for ordinary property owners along its route.
UFB2 is a $150 million to $210m government project to extend the reach of the ultrafast broadband network to at least another 5 per cent of households by the end of 2022.
The Government has encouraged councils to compete to have towns included in UFB2, saying they could even contribute financially.
However, the competition appears to be having a political downside as it encourages councils to spell out the gaps in broadband coverage, in bidding documents submitted to the Ministry of Business, Innovation and Employment.
Wairoa District Council believed the Wairoa-Tuai cable connected a Genesis Energy facility.
But a spokesman for Communications Minister Amy Adams said his understanding was that the cable had been installed for the benefit of a school near Tuai, Te Kura O Waikaremoana, which was now in the process of connecting to it, and not Genesis Energy.
The Government had made schools a top priority and made a commitment to rolling out fibre to all schools by the end of 2015, excluding 57 more-remote schools which would get wireless broadband, he said. ‘‘We make no apologies for this.’’
A council bidding document said while it was technically possible to connect farms along the route of the 55km cable, wholesale pricing meant property owners would have to pay upwards of $18,000, even if they lived just a few metres away.
‘‘This means that this fibre is most unlikely to see any further customers over the course of its lifetime,’’ the council said.
Curran said the cable, and other data gathered by councils, raised questions about the Government’s rural broadband priorities, exposing ‘‘regional neglect on a grand scale’’.
‘‘According to council surveys, in places like Huntly just 44 per cent of households have access to the internet; 51 per cent in Tuakau and 50 per cent in Taumarunui.’’
‘‘In Clutha it costs $100,000 to connect because a transmission cable was run through the region, not a connecting cable.
‘‘In Kawerau both main schools have complained that very few of their students have the internet at home, due to cost and access issues.’’
Telecommunications Users Association chief executive Craig Young said it had been agreed that fibre-optic cables funded through the Government’s Rural Broadband Initiative (RBI) would be made available to users at a reasonable cost but it was not clear if that had ‘‘panned out’’.
‘‘That really needs to be looked at – has that service been taken up, and if not, shouldn’t we be looking at why?’’
The lobby group encouraged local input into investment decisions such as UFB2, Young said.
‘‘From our perspective it is always better when people are engaged and involved.’’
But its preference
would
‘‘not have been for UFB2 to be seen as a competition’’, he said.
‘‘The way it has turned feels a bit competitive.’’
Adams’ spokesman defended the process. ‘‘There’s only $150m to $210m to go around and we need to ensure that UFB is being built to as many people as possible for the money, so if councils can assist with reducing costs or time delays then the money will go further.
‘‘It’s also important that those who are going to get UFB are going to capitalise on it,’’ he said.
Chorus spokesman Nathan Beaumont confirmed the WairoaTuai cable had been partially funded by the RBI.
Connection costs would be set on a ‘‘case by case basis’’ when a prospective customer asked for a quote, he said.
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