The contract to develop our Rural Broadband network looks like it will be awarded to the joint bid from Telecom and Vodafone.
Communications and IT minister Steven Joyce announced on Monday that contrract negotiatio
ns between the government and the two telco giants are already underway.
The full Broadband rollout is earmarked for completion by 2016, targeting 86 percent of rural households, and 95 percent of schools.
Federated Farmers President Don Nicolson says the announcement was not unexpected, though at the moment there aren’t enough details to gauge its potential.
"It’s got good potential, but it’s about delivery, and in the past the country has tried to have roll outs faster than the companies have been able to deploy them.
"We just need to make sure that we have the capabilities in New Zealand to do it, and that farmers and rural Kiwis get up to speed with our urban cousins."
Mr Nicolson says Federated Farmers are willing to work with the two companies to help in any way they can.
"We are more than willing to work with telecom and Vodafone and make sure that we deliver for our members – simple as that."
Head here for the full Government Announcement.