Good response to rural broadband tender process

Five final proposals for the Rural Broadband Initiative have been received by the government, Communications and Information Technology Minister Steven Joyce announced today. 

"I have been impressed by the substantial amount of interest in the Rural Broadband Initiative since it was announced in March," said Mr Joyce. 

"The Rural Broadband Initiative will make significant improvements to the productive sector, and will also serve to reduce the digital divide that has existed between rural and urban communities.

"It's pleasing to see much of the rural broadband discussion has now moved from a lack of infrastructure to the opportunities that will be made available to rural communities."

The tender for national coverage will see 80 per cent of rural households getting speeds of at least 5Mbps and the remainder receiving at least 1Mbps.  

In addition, the proposals offer to connect at least 93 per cent of rural schools to fibre. 

"The change to a national approach in August encouraged collaboration and leveraging of existing assets," said Mr Joyce.  "I anticipate all the tender proposals provide this in some way.  This will ensure greater certainty of coverage for the money available."

The government will be undertaking an intensive evaluation of the proposals over the next four weeks.   This is a commercially sensitive process, so the government will not be commenting on the specifics of any particular proposals.

Negotiations for the contract worth approximately $285 million are expected to commence next month.

A request for proposals for satellite connections for remote rural schools will be released in March next year.