TelstraClear appears to have ruled itself out of direct investment in the government’s $1.5 billion Ultra Fast Broadband network. In its submission to the MED’s paper ‘Facilitating the Deployment of Broadband Infrastructure’, TelstraClear states its position “in the future world of LFCs” as follows:
- A supplier of backhaul to each of the Local Fibre Co zones,
- A customer of wholesale products designed by LFCs,
- A competitor with its fibre-based services as well as the Hybrid Fibre Coaxial (HFC) network in Christchurch and Wellington,
And, most revealingly, as a partner:“While the restrictions on ownership of LFCs by vertically integrated operators may limit our direct equity participation, TelstraClear sees a role for itself in partnering with LFCs. We have already demonstrated experience and capabilities through our partnership with NorthPower in Whangarei, where NorthPower deployed layer 1 and layer 2 network infrastructures over which TelstraClear provide their range of NextIP services. TelstraClear have also demonstrated an ability to partner at an infrastructure level to provide services to Nelson businesses via our partnership,” the submission reads.A company spokesperson couldn't confirm if this means TelstraClear won’t be submitting a proposal to invest in the government’s network, which is due 29 January.“The Crown Fibre Holdings noted there had been 39 notices of interest submitted in a confidential process which we respect,” he says.Evaluating the LFC investment proposals will be newly appointed CFH chief executive Graham Mitchell, who officially starts the role next month. Mitchell is the former CEO of Cogent Communications, and has held senior roles in AAPT and Telecom. His appointment was announced shortly before Christmas. Coincidentally, on the same day one of the architect’s of the government's scheme, Ralph Chivers, announced he’d completed his six-month MED contract. Chivers has been appointed Telecom’s Head of Government and Industry Relations.
