Curran Clare: Questions for Oral Answer — Questions to Ministers 
Curran Clare: Questions for Oral Answer — Questions to Ministers 
[Volume:671;Page:17535] 
10. 
CLARE CURRAN (Labour—Dunedin South) 
 to the  
Minister for Communications and Information Technology 
: By what date will the 75 percent of urban New Zealanders receive ultra-fast broadband under his current proposal? 
Hon STEVEN JOYCE (Minister for Communications and Information Technology) 
: 
 It remains the Government’s intention that 75 percent of New Zealanders—mostly urban residents—will have access to ultra-fast broadband to the home by 2019 as stated during the 2008 election campaign. That timetable is the one we are continuing to work to. 
Clare Curran 
: Does he agree with submissions by InternetNZ and the Commerce Commission to the Finance and Expenditure Committee last week that the price of copper-based broadband services will increase in urban areas by an estimated 20 percent as a result of the Government’s telecommunications legislation; if not why not? 
Hon STEVEN JOYCE 
: I think it is highly unlikely because of the competitive effects of the Fibre to the Home package. Although the unbundled copper local loop is the issue that I think the submitters are referring to competition with the fibre access network will ensure that the price increase does not occur. 
Clare Curran 
: Can he guarantee that his new telecommunications laws will not result in the cost of those existing copper services going up and a freeze in investments in service improvement given that the bulk of New Zealanders will not receive ultra-fast broadband in their homes until at least the end of 2019 and will therefore be reliant on the existing copper-based services? 
Hon STEVEN JOYCE 
: I think the member is missing the point in terms of the investment in copper services. The point of the initiative is to encourage further investment in the Fibre to the Home services. New investment in copper services has been declining as a result of sub-loop unbundling and the ADSL work being done by Telecom so Fibre to the Home is where I think most of the investment will occur in the future. 
Clare Curran 
: Does the migration of New Zealand consumers from copper to fibre services require the provision in his new law that prices for current copper-based broadband services be re-averaged resulting in an up to 20 percent hike in urban prices in order to achieve the Government’s policy objective of 75 percent of New Zealanders receiving ultra-fast broadband? 
Hon STEVEN JOYCE 
: The averaging of unbundled copper local loop is something that would be required because otherwise the rural subscribers would potentially be stranded on the copper network. [ 
Interruption 
] Actually the cross-subsidy is currently between urban and rural services. Averaging the unbundled copper local loop is the only practical way of dealing with this situation. Again I point out that the very moderate cost as reported in the  
New Zealand Herald 
 today of between $47 and $80 per month with fibre access will ensure very competitive pricing. 
Clare Curran 
: How can the public be reassured that they are not paying prices that are too high for copper-based broadband services now and for ultra-fast fibre broadband in the future given that his legislation removes the ability for independent scrutiny from the Commerce Commission on pricing; is it just because he says so? 
Hon STEVEN JOYCE 
: No and in fact the wholesale prices that have been advised to the market—firstly by me prior to Christmas last year and then subsequently in the  
New Zealand Herald 
 today—point out that those prices will be very very competitive with existing copper services and the Government has made a very strong effort through Crown Fibre Holdings to attain those prices. The point is that the only bit over which the Commerce Commission will not have oversight is those prices. They will be agreed by contract between Crown Fibre Holdings and the bidders and will not be able to be put up.