Fernando Beltran, Senior Lecturer, University of Auckland Fernando Beltrán (f.beltran@auckland.ac.nz) is a Senior Lecturer with the Department of Information Systems and Operations Management of The University of Auckland Business School. He received a B.E. in Electrical Engineering from Universidad de Los Andes in Bogotá, Colombia, and a Ph.D. in Applied Mathematics from State University of New York at Stony Brook, USA. His research interests include the economics of service competition in open-access Next-Generation platforms, the digital dividend, and the efficient sharing and allocation of radio spectrum. He has pioneered the application of agent-based computational methods to simulate and analyse new conditions of competition and regulation in Next-Generation networks and the consumer’s fibre uptake problem in the context of national broadband deployments. An academic visitor to the US FCC, CITI Columbia University Business School, EECS Department of UC Berkeley, INRIA Rennes, France, and UPC Barcelona, Spain, he has consulted for various government agencies and telecommunications operators in New Zealand, Colombia, Uruguay and the United States.

1. New Zealand
Varied forms of public sector
involvement in broadband:
Australia and New Zealand
The University of Auckland
Fernando Beltrán
University of Auckland
DigiWorld Summit 2013
Montpellier, France
November 19-21, 2013

2. Why Next Generation Access networks?
2013
Trends showing in some parts of the world (Given, 2010):
“Shared conviction about the anticipated size of fast broadband’s economic
and social benefits”
The University of Auckland
New Zealand
(Reynolds, 2009):
• “Broadband networks are increasingly recognised as fundamental for
economic and social development.”
• “They serve as communication and transaction platforms for the entire
economy and can improve productivity across all sectors.”
• “Advanced communication networks are a key component of innovative
ecosystems and support economic growth.”

3. Why government participation?
The University of Auckland
New Zealand
2013
(Given, 2010):
• Australia and New Zealand were perceived to be lagging. Both
were well behind the OECD average for total broadband
penetration in early 2000s.
• Incumbents not investing in fibre access networks.
• “The big ones were not consistently aggressive enough; the
aggressive ones were not big enough”
• Shift away from the liberalization and privatization policy consensus
that dominated the last two decades.
Question: Will a wholesale-only fixed access network
operation maximize those benefits?

4. 2013
New Zealand
The University of Auckland
Australia’s National Broadband Network (NBN)

5. National Broadband Network NBN
(before September 2013 election)
2013
March 2009
2011
The University of Auckland
New Zealand
Sept 2012
Australian Labor government announces plans to
invest A$ 40 billion in NBN. Creates NBN Co.
Costs are revised to A$ 37 billion
Special Access Undertaking SAU framework delivered to ACCC
A$11 billion deal with Telstra; A$800M Optus deal
FTTH – 100Mbps symmetrical
7%
FTTP
other
93%
Fixed wireless (LTE/4G)
Satellite
- 12/1 Mbps
- 12/1 Mbps

6. 2013
Fibre Serving Areas
The University of Auckland
New Zealand
Fibre serving area
Source: NBN Co

7. 2013
Fibre Serving Areas + Wireless
Fibre serving area
The University of Auckland
New Zealand
Wireless coverage
Source: NBN Co

8. Fibre Serving Areas + Wireless + Satellite
2013
Fibre serving area
Wireless coverage
Satellite Earth station
The University of Auckland
New Zealand
Satellite beam
Source: NBN Co

9. National Broadband Network NBN
(after September 2013 election)
7%
2013
FTTP
93%
The University of Auckland
New Zealand
Sept 2013
Nov 2013
other
Coalition announces NBN will be a FTTN network
Coalition commissions three review studies on NBN
Cost is revised down to A$ 22 billion
ACCC awaits government decisions on NBN
Terms of Telstra deal (but not the amount) most likely to be
renegotiated
7%
22%
FTTP
FTTN
other
71%

10. 2013
New Zealand
The University of Auckland
New Zealand’s dual approach:
Ultra-Fast Broadband Network (UFB)
and Rural Broadband Initiative (RBI)

11. Ultra-Fast Broadband (UFB) and
Rural Broadband Initiative (RBI)
Election led National Party to government
2009
NZ Government pledged $1.5 billion investment in a nationwide broadband infrastructure, which will bring broadband to all
Kiwis
• UFB Ultra-Fast Broadband
75% of HH
• RBI Rural Broadband Initiative 25% of HH
The University of Auckland
New Zealand
2013
2008
First six years on priority broadband users
• businesses
• schools
• health services
• plus green field developments and
certain tranches of residential areas
2011
Tender procedure for a Public Private Partnership
GPON deployment won by four companies:
• 3 Local Fibre Companies
• Chorus (former incumbent, demerged)

12. The University of Auckland
New Zealand
2013
New Zealand’s
Ultra-Fast Broadband Network UFB
Source: CFH

13. Content
market
The University of Auckland
Content
and
Service 1
Content
and
Service n
Content
provider
New Zealand
2013
NGN service platform and markets
RSP
Access
market
RSP
Competing
access
provider
RSP
LFC
LFC
LFC
Broadband
LFC
Broadband
Broadband
network
Broadband
network
network
network
End users

14. The University of Auckland
New Zealand
2013
UFB Operating Structure
Source: CFH

15. The University of Auckland
New Zealand
2013
UFB Financial Structure
Source: CFH

16. New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
How much
does it
cost?
How is it
structured?
What are
the
regulations?
New Zealand

17. New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
How much
does it
cost?
How is it
structured?
What are
the
regulations?
Deployment Target
By 2020
12.2 million fibre premises passed,
1 million fixed wireless and satellite
premises covered;
8.5 million fibre premises connected
(NBN Co 2012a).
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)

18. New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
How much
does it
cost?
Deployment Target
•
Funding
•
Capital
expenditure
$ per person
•
How is it
structured?
What are
the
regulations?
By 2020
12.2 million fibre premises passed,
1 million fixed wireless and satellite
premises covered;
8.5 million fibre premises connected
(NBN Co 2012a).
Government funded
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
A $ 37.4 billion [€ 49,1 billion*]
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€ 0.95 billion*]
A $1,669 [€ 1,270]
NZ $ 341 [€ 215]

19. New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
Deployment Target
By 2020
12.2 million fibre premises passed,
1 million fixed wireless and satellite
premises covered;
8.5 million fibre premises connected
(NBN Co 2012a).
Government funded
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
How is it
structured?
What are
the
regulations?
•
Funding
•
Capital
expenditure
$ per person
A $ 37.4 billion [€ 49,1 billion*]
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€ 0.95 billion*]
•
How much
does it
cost?
A $1,669 [€ 1,270]
NZ $ 341 [€ 215]
•
Leading agency
Crown Fibre Holdings, CFH.
•
Private
participation
National Broadband Network Company,
NBN Co.
NBN Co is wholly owned by the
Australian government; private
participation is through procurement
contracts for fibre build-up.
Regional Backbone Blackspots Program,
RBBP.
Four partnerships with private parties
(Chorus, Enable Networks, North
Power Fibre, UltraFast Fibre)
Rural Broadband Initiative, RBI.

20. New Zealand and Australia
(before Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
Deployment Target
By 2020
12.2 million fibre premises passed,
1 million fixed wireless and satellite
premises covered;
8.5 million fibre premises connected
(NBN Co 2012a).
Government funded
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
•
Funding
•
A $ 37.4 billion [€ 49,1 billion*]
•
Capital
expenditure
$ per person
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€0.95 billion*]
A $1,669 [€ 1,270]
NZ $ 341 [€ 215]
How is it
structured?
•
Leading agency
Crown Fibre Holdings, CFH.
•
Private
participation
What are
the
regulations?
•
Regulatory
commitments
•
Copper
infrastructure
National Broadband Network Company,
NBN Co.
NBN Co is wholly owned by the
Australian government; private
participation is through procurement
contracts for fibre build-up.
Regional Backbone Blackspots Program,
RBBP.
Self-regulatory guidelines and
commitments consigned in the Special
Access Undertakings under review by
ACCC
Total decommission of Telstra’s last mile
copper infrastructure as dictated by the
NBN Co-Telstra agreement
How much
does it
cost?
Four partnerships with private parties
(Chorus, Enable Networks, North
Power Fibre, UltraFast Fibre)
Rural Broadband Initiative, RBI.
Commerce Commission monitors the
buildup process
Commerce Commission rules in
favour of access seekers by reducing
the price of UCLL.

21. New Zealand and Australia
(post Australian 2013 election)
The University of Auckland
New Zealand
2013
Australia
How are
they doing?
Deployment Target
???
•
Funding
Government funded
•
A$ 22 billion
•
Capital
expenditure
$ per person
How is it
structured?
•
Leading agency
National Broadband Network Company,
NBN Co.
•
Private
participation
What are
the
regulations?
•
Regulatory
commitments
•
Copper
infrastructure
How much
does it
cost?
New Zealand
By 2019
1,350,000 fibre premises passed;
By 2015
252,000 rural households covered
(MBIE 2012)
Government invests half of the total
and private partners afford the rest
NZ $ 1.5 billion [€ 0.95 billion*]
NZ $ 341 [€ 215]
Crown Fibre Holdings, CFH.
Four partnerships with private parties
(Chorus, Enable Networks, North
Power Fibre, UltraFast Fibre)
Rural Broadband Initiative, RBI.
Self-regulatory guidelines and
commitments consigned in the Special
Access Undertakings under review by
ACCC
Telstra agreement under discussion
Commerce Commission monitors the
buildup process
Commerce Commission rules in
favour of access seekers by reducing
the price of UCLL.

22. 2013
New Zealand
The University of Auckland
merci
thank you
tēnā koutou
gracias
f.beltran@auckland.ac.nz
TPRC 2011
23

23. References
New Zealand
The University of Auckland
Given, J. (2010) Take your partners: Public private interplay in Australian and New Zealand plans for
next generation broadband. Telecommunications Policy, Volume 34, Issue 9, October 2010, Pages 540549

Reynolds, T.(2009). The role of communications infrastructure investment in economic recovery.
DSTI/ICCP/CISP(2009). Paris: OECD

2013

NBN Co. (2012). NBN Corporate Plan 2012-2015

CFH (2010). Ultra Fast Broadband in Business - Seizing the Opportunity

Beltrán, F. (2013) Effectiveness and efficiency in the build-up of high-speed broadband platforms in
Australia and New Zealand. Communications and Strategies.

Beltrán, F. (2013) Fibre-to-the-home, high-speed and national broadband plans: Tales from Down Under.
Telecommunications Policy.