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To: Maurice Winn who wrote (31394)	9/18/2009 12:12:06 AM
From: Peter Ecclesine	Read Replies (3) \| Respond to of 46821

Hi Mqurice, Any comment on the NZ Government initiative? Ultra-fast broadband investment initiative med.govt.nz The government's overall objective for the ultra-fast broadband investment initiative is to accelerate the roll-out of ultra-fast broadband to 75 percent of New Zealanders over ten years, concentrating in the first six years on priority broadband users such as businesses, schools and health services, plus green-field developments and certain tranches of residential areas. This government's objective will be supported by government investment of up to $1.5 billion, which is expected to be at least matched by an equal amount of private sector investment, and will be directed to open-access infrastructure. On 16 September 2009, Communications and Information Technology Minister Hon Steven Joyce announced the final design of the government's broadband investment initiative [link to Beehive website]. Key highlights Key highlights of the government’ proposal include: An open, competitive partner selection process. Government investment will be directed to an open access, passive fibre network infrastructure. A new Crown-owned investment company ('Crown Fibre Holdings') will be operational by October, which will carry out the government’s partner selection process and manage the government’s investment in fibre networks. Crown Fibre Holdings will establish with private sector partners a 'Local Fibre Company' (LFC) in each region, to deploy fibre network infrastructure and provide access to dark fibre products and, optionally, certain active wholesale Layer 2 services. The Government is open to national proposals and proposals aggregating any combination of LFC regions. Expansion from 25 to 33 candidate coverage areas based on the largest urban areas (by population in 2021). LFCs will be required from day one to be open networks facilitating access to their infrastructure on an equivalent basis to all users. LFCs cannot be controlled by any party who also operates as a telecommunications retailer. Further detail will be made available as part of the partner selection process. · Final proposal overview document This document sets out an overview of the government's ultra-fast broadband investment initiative. · Draft proposal and submissions The government's draft proposal for ultra-fast broadband investment and submissions received on it..

To: Maurice Winn who wrote (31394)	9/18/2009 1:48:42 AM
From: Crossy	Read Replies (1) \| Respond to of 46821

Maurice, thanks for clearing up the situation on the Fiber situation in NZ. I see I could agree with most of what you write. The "pricing of packets" is counterintuitive to the essence of hte Internet. The Internet to be as useful as it's now requires FLAT FEE pricing. Don'T forget, there's the equivalent of Moore's law for bandwidth (called Nielsen's law), so the upgrades (on a linear fashion) are progressively cheaper. From your profile, I figure you should be tech-savvy enough to epxlore the background. If a backbone were congested, the respective SPs would be losing customers and void SLAs. The monthly flat charge allows for the required upgrade in peak capacity. Flat-fee Internet is the only way to go. Comeptitive providers learnt this lesson a long time ago... rgrds CROSSY