12. Question No. 12—Digital Economy and CommunicationsNAISI CHEN (Labour) to the Minister for the Digital Economy and CommunicationsQuestion No. 12—Digital Economy and Communications12. NAISI CHEN (Labour) to the Minister for the Digital Economy and Communications: Fakafetai Mr Speaker. What recent announcements has he made regarding accelerating the roll-out of 5G services across New Zealand?Hon Dr DAVID CLARK (Minister for the Digital Economy and Communications): Mr Speaker mālō ni. Last week—more good news—I announced the Government is working with the major telecommunications network operators to accelerate New Zealand's 5G roll-out and improve rural connectivity. Our three major mobile network operators—Spark 2degrees and Vodafone—will now be required to increase the pace of the 5G roll-out to small towns across New Zealand in return for the spectrum that underpins their wireless technologies. There is also an expectation they will continue existing efforts to improve rural connectivity. This is good news for New Zealanders especially those in our rural communities who stand to benefit from this new agreement through gaining access to the speed capacity and reliability of 5G services.Naisi Chen: Who will benefit from an accelerated 5G roll-out as a result of the direct allocation process?Hon Dr DAVID CLARK: This Government is committed to improving connectivity for those in rural communities. This has been a key focus of our negotiations with communications operators over the past few months. The accelerated 5G roll-out will target provincial and smaller towns across New Zealand so people outside of our main centres can also enjoy the benefits of this new technology. The speed capacity and reliability of 5G is expected to underpin a successful digital economy. I do look forward to announcing further details around the towns that will be targeted during this initiative and the number of people who will benefit in due course.Naisi Chen: What reactions has he seen regarding the agreement?Hon Dr DAVID CLARK: Craig Young from the Telecommunications Users Association welcomed the announcement that the Government would be shifting from an auction to directly allocating spectrum. He said that users have historically ended up paying for auction revenue through higher user-charges. 2dgerees CEO Mark Callander said that the announcement is great news for Kiwis. Matthew Flood from Vodafone said that the Government's proposal supports the pace for our investment in areas that would not otherwise see benefits of 5G in the near term.Naisi Chen: How does the agreement build on the Government's current work to improve rural connectivity?Hon Dr DAVID CLARK: As of June 2022 Government investment in rural connectivity improvements has amongst other things provided faster broadband to more than 75000 rural households and businesses under the rural broadband phase 2 programme. It's provided mobile coverage to over a thousand kilometres of State highway and coverage to nearly a hundred rural tourism sites under the Mobile Black Spot Fund. The proportion of New Zealanders with access to ultra-fast broadband has increased from 63 percent in 2017 to over 85 percent today. The agreement also complements other Government investment including our $60 million manifesto commitment to improve rural connectivity allocated through Budget 2022 and the $47 million of rural capacity upgrades I announced in February 2022. I'm proud to be part of a Government which is improving connectivity for all New Zealanders.