National have just announced their $1.5 billion broadband “investment” plan.
National’s plan is essentially a internet subsidy for Farmers and rural communities, paid for by city folk. The fact is that it costs more money to run cables out into the country and the reduced population density makes it even harder to recoup costs. But if you choose to live in the city, you accept that you’ll have to pay higher rates, land and house prices, rents and many other expenses, whereas those in rural towns or in the country can find a house for $50,000.
It’s not as if people living in rural areas don’t have access to broadband, they just don’t always have access to cheap ADSL and they may have to pay more for a satellite connection. That’s just one of those prices you pay for living in the country – just as you pay more for delivery of mail.
This plan is like building 4-lane motorways to every rural town in the country, when (as is the actual case) we don’t even have decent roads in the cities yet. Perhaps if the government hadn’t been interfering over the last 20 years, there would have been more investment and utilisation of wireless to cover rural areas.
So, are National now further left than Labour? Sometimes.
Here are some quotes I found about the plan:
“National’s plan amounted to a state subsidy for a monopoly firm, Telecom. I see nothing but problems and trouble. It’s back to the future. This puts all of National’s eggs in Telecom’s basket and means the incumbent has both them [National] and the market over a barrel in future access pricing negotiations. The plan would create a new monopoly, waste money and reduce competition.”
- David Cunliffe, Minister for Communications
“The main problem currently is the fact that the private sector can’t make sufficient return from New Zealand’s small market from the large-scale investment needed … National’s proposal … could potentially help overcome this funding barrier.”
- Paul Reynolds, Telecom Chief Executive
“The plan is a step in the right direction.”
- The EPMU
“A government would do this as a last resort.”
- Bill English
“We’re up to the last resort.”
- John Key