700MHz and The Digital Dividend

As the process to release Digital Dividend radio spectrum kicks off, media outlets have started covering the issue with enthusiasm. Computerworld, The Dominion Post, NBR, and TUANZ have all featured articles on this spectrum in the last week. There’s plenty of fodder for the news, as matters of contention are both technical and market driven.

From a technical standpoint the most likely bidders (Telecom, Vodafone, and 2Degrees Mobile) agree the spectrum should follow the APT Wireless Forum’s Region 3 Harmonized FDD Arrangement, which divides the 108 MHz available into a pair of 45MHz blocks, separated by guard bands at the bottom, middle, and top of the block. This plan assumes the use of “LTE” or Long Term Evolution technology and allows for subdivision a number of ways, into spectrum for three, four, or five national cellular carriers.
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Ultra Fast Broadband for Schools – By the Numbers

The funding of ultra-fast broadband for schools has been a policy aim of the National Government since at least 2008. With the formal introduction of the Rural Broadband Initiative, a goal of 97% coverage was set for schools connected to at least 100mbps broadband. That 97% figure has been repeated often, including in a speech by Stephen Joyce at the 2010 TUANZ Rural Broadband Symposium.

Based on February 2011 statistics from the Ministry of Education, Chorus published data on the Rural Broadband Initiative, and Crown Fibre Holdings releases on New Zealand’s 33 UFB regions, it is evident that that the funding provided by the Telecommunications Amendment Bill will fall short of policy aims, and will leave a significant number of schools and students connected to consumer-grade ADSL connections. The particular schools missing out and their location details are detailed on this blog in an article entitled “Broadband for Schools – Rural Communities Miss Out“. The charts below seek to quantify the problem.
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Broadband for Schools – Rural Communities Miss Out

With the “Telecommunications (TSO, Broadband, and Other Matters) Amendment Bill“, Government hopes to fund two programmes to deliver broadband to all New Zealanders, with a focus on fibre for schools.

The Rural Broadband Initiative has been awarded to Telecom and Vodafone. Telecom will supply fibre connections to around 750 schools, servicing 74,000 students, and will upgrade around 1000 ADSL cabinets along the way. Vodafone will improve cellular phone coverage, and broadband coverage in areas unreachable by ADSL.

The Ultra Fast Broadband initiative will develop a new fibre infrastructure in New Zealand’s 33 largest cities and towns, over which retail service providers will be able to purchase a wholesale broadband service. Around 1340 schools and 550,000 students should be covered by this new broadband service.

Based on documents released at the conclusion of negotiations for the RBI however, it is apparent that close to 500 470 schools, servicing 114,000 108,000 students, will get no fibre at all through the current process. The MED, in response to questions about these schools, states that they should be able to get access to ADSL2+, and that “A procurement process is likely to commence in 2012-13”. (Updated figures 2011-05-16)
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Feedback on proposed variation (5) to Telecom’s Operational Separation Undertakings

Dear Minister,

In their 25th March 2011 letter to you, Telecom New Zealand state: “The RBI requires that the RBI services be provided on non-discriminatory and open-access terms – a commitment we are happy to make.” They specifically mention the “rural schools objective” and the “rural community objective”, but not necessarily in relation to the variations sought.

Telecom fails to mention another part the government’s stated Rural Broadband Initiative policy:

(f) The achievement of the RBI will be consistent with the following principles:
(i) making a significant contribution to economic growth;
(ii) neither discouraging, nor substituting for, private sector investment;
(iii) maximising the use of existing infrastructure; and
(iv) ensuring affordable broadband services.

It is apparent based one particular example noted in Telecom’s variation request that although Telecom is willing to meet the rural schools objective and the rural community objective, they are not willing to do so in a manner consistent with the principles stated above.
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