NZ Government To Recommend Ultra-Fast Broadband Partners By October

WELLINGTON (Dow Jones)--The New Zealand government plans to make recommendations on investment partners for a NZ$3 billion ultra-fast broadband initiative by October, Crown Fibre Holdings said in a statement Friday. Crown Fibre Holdings is the government body managing the NZ$1.5 billion the government will invest in ultra-fast broadband over the next 10 years. It has received 33 proposals from 18 different parties and consortia to build the high-speed network. Selected private sector participants, known as Local Fibre Companies, will match the funding. Crown Fibre also said it will ask interested parties to resubmit refined proposals after some amendments to the UFB model. Under the new terms, open access will be offered at both Layer 1 services and Layer 2 services. Open access means that the UFB must be made available to any service provider on equal terms. Layer 1 is normally associated with passive fibre optic network infrastructure, while Layer 2 is normally associated with active fibre optic network infrastructure, or the electronics that light fibre. Refined proposals must be submitted by August. Interested parties include Telecom Corp. of New Zealand Ltd. (TEL.NZ). However, the government has said telecommunications retailers cannot hold a majority share in any of the Local Fibre Companies in the UFB network. As a result, Telecom is currently investigating structural separation, possibly spinning off its network company Chorus, so it can participate in the government's initiative. Vodafone Group PLC's (VOD) local unit and Canada's Axia NetMedia Corp. (AXANF) have also formed an alliance to participate in the initiative. Lines company Vector Ltd. (VCT.NZ) is also seeking to participate. -By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com (END) Dow Jones Newswires July 01, 2010 22:38 ET (02:38 GMT)