Wireless carriers push back on fibre-first rural broadband
Sector-backed report calls for technology-neutral approach to rural funding
A report commissioned by the mobile carriers and their tower partners challenges the idea that fibre should be the first choice for rural connectivity.
Connecting Rural New Zealand was written by UK-based Flint Global. It was commissioned by Spark, One NZ, 2degrees, Fortysouth and Connexa, in effect the entire mobile sector. These companies also sell fixed wireless broadband.
The mobile sector wants any initiative to improve rural broadband to be based on outcomes, not the delivery technology or, in their words: “not infrastructure ideology”.
They say rural users care more about what they get than how they get it.
Public funding
The report also makes a case for any public money spent on rural broadband to be used to target genuine coverage gaps. It wants to see competitive funding and, while it acknowledges there is a role for fibre, it says the government should “avoid subsidising fibre where wireless or satellite can deliver similar outcomes faster and cheaper”.
2degrees CEO Mark Callander sums up the position: “Fixed wireless, mobile and satellite services are quickly developing and improving. A technology-neutral approach means rural communities can benefit from world-class connectivity sooner, while fibre can still be prioritised where the case for it is strongest.”
It adds up to a sophisticated sales pitch on behalf of the mobile sector in the light of 2025’s announcement by Te Waihanga, the Infrastructure Commission, that Chorus’ plan to extend its fibre network is on the Infrastructure Priorities Programme.
The pitch is less about fibre or fixed wireless, more about fibre and fixed wireless.
There is a nod in the report to the regional wireless internet service providers, which it calls “non-cellular FWA (fixed wireless access) networks” and “Wisps”. It notes that 69 percent of households without fibre are already within the coverage area of at least one non-cellular fixed wireless network.
The report also notes that satellite connections in rural New Zealand grew 60 percent in a year and says satellite could overtake copper in rural areas soon.
Analysis: Small regional providers also have a role
There’s no question fibre remains the best broadband technology. The report accepts it is the gold standard. Yet we know it is not the practical option for every rural home or business.
The mobile sector says it wants to see a technology-neutral approach. Given that the companies who commissioned the report are all national mobile or infrastructure operators, it’s clear they want a share of any government funding for rural connectivity to head their way. That’s understandable.
There is much in the report about mobile fixed wireless, fibre and LEO satellite services, but discussion of the role smaller regional providers could play in future rural connectivity programmes is glossed over.
Small regional providers don’t have budgets to pay for fancy London analyst reports and lobbyists in Wellington, but they have been successfully serving local communities for years now. Many of the hardest-to-reach locations are connected by Wisps, not mobile carriers or fibre companies. They do it on the smell of an oily rag.
As the mobile sector companies say in the report: “Rural users care more about what they get than how they get it.” It’s a philosophy that Wisps understood and pioneered.
When the report argues for “competitive allocation” and “technology-neutral” funding, it could be making a case for those regional service providers.
Offshore telcos face NZ regulation
The Economic Development, Science and Innovation Committee has recommended passing the Telecommunications and Other Matters Amendment Bill, extending New Zealand’s regulatory reach to offshore providers serving local customers.
The bill aims to ensure all providers serving New Zealand consumers are covered by local law, regardless of where they or their infrastructure are based.
That would bring overseas operators into rules covering industry levies, consumer protections, emergency calling and access services.
The bill also clarifies that, under the Telecommunications (Interception Capability and Security) Act, (TICSA), network operators and service providers can be based either in New Zealand or overseas.
Updated wording says the law applies to overseas providers if they offer services to end-users in New Zealand, even when infrastructure is partly or wholly offshore.
New enforcement powers
The legislation would also create a new enforcement regime. Radio and spectrum licences could be revoked, suspended or restricted where existing enforcement options are impractical.
The new powers would sit in a proposed Part 7A of the Radiocommunications Act. They would allow the Ministry of Business, Innovation and Employment secretary to revoke licences or restrict spectrum access for serious breaches of either the Telecommunications Act or TICSA.
The committee narrowed some of the original extra-territorial powers. It recommended limiting offshore enforcement linked to regulations to emergency calling requirements only.
It also added safeguards, including written notice and an opportunity for providers to respond before penalties are imposed.
New Zealand cables “Iceland Unplugged”
Assistant Transport Minister James Meager requested a progress report on 10 "no-cost, low-effort" initiatives to address vulnerabilities in New Zealand's undersea internet and power cables from the Ministry of Transport.
Part of the status update included analysis of an "Iceland Unplugged" simulation where four submarine cables were cut. It found that New Zealand's existing five international cables provide enough redundancy so that losing one would not be felt by the public.
The report estimates that a new submarine cable from here to the US costs around $1 billion. This underlines why the government is focusing on low-cost regulatory protections rather than building a new connection.
You can read the public version of the document here, however large parts have been blocked out, mainly the sections on "state-sponsored threats" and "grey zone tactics”. Despite this, it says the most common physical risks remain fishing gear and anchors.
In other news...
- Netflix launching cheaper ad-supported plan in NZ — NZ Herald
Ad plans come with a few catches. - The tech we build matters — The Post
Government has a key role
Telecom among the least competitive industries
The Commerce Commission names telecoms as one of the least competitive industries in its first State of Competition report published this week. The report is a snapshot of how competition is working across the economy.
It says: “Governments have opted to regulate sectors with limited or no competition to improve market outcomes, including...telecommunications...”.
The report notes the sector has been subject to significant change over the past two decades, including the structural separation of Telecom and the entry of 2degrees. It says the Commerce Commission continues to take an active role in promoting competition and monitoring the sector.
Part of the report’s analysis looks at industries that are upstream, which means their services are inputs for other industries, or downstream. Low competition in upstream industries can have a knock-on effect across the economy. Telecoms is upstream, which makes it economically significant.
TCF updates disclosure code
The New Zealand Telecommunications Forum has updated the Product Disclosure Code, previously known as the Broadband Product Disclosure Code.
This is a set of guidelines that help consumers compare competing product offers. It sets out minimum obligations for information service providers to include in plan descriptions. This includes setting out the words and terminology that have to be used.
For now the code covers broadband products, but future updates will include comparisons of mobile plans.
This time last year
The Commerce Commission review of its Fibre Regulations Framework got underway and received initial submissions from Chorus and 2degrees expressing widely different views on the next set of rules.
Five years ago in Download Weekly
UK-based research company Opensignal published a report saying the gap between New Zealand’s rural and urban mobile experiences was closing. It went on to warn that the arrival of 5G mobile could muddy that picture.
Ten years ago Spark and Huawei switched on New Zealand’s first 4.5G mobile site in central Christchurch. The two demonstrated gigabit download speeds.
Bill Bennett
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