Australian telco Telstra will spend more than NZ$1
billion (US$487.4 million) over five years to create a national
broadband network in New Zealand, after announcing a joint venture
between its NZ operations and those of communications group Austar United Communications.
Telstra New Zealand and Austar’s NZ operation Saturn Communications will form
Telstra Saturn, which will offer voice, data, Internet, mobile and pay
television services to NZ business and residential markets.
The companies’ investment will develop infrastructure including a
submarine backbone linking Auckland, Wellington and Christchurch, as
well as fibre access in the Central Business Districts of these
cities.
Telstra Saturn will also explore wireless business connectivity in
the smaller NZ centres of Hamilton, Dunedin and Tauranga.
The new company will also provide fibre access in Auckland,
Wellington and Christchurch to supplement Saturn’s existing network in
Wellington.
While the investment will supplement some of NZ’s infrastructure,
Telstra is also aiming to overhaul New Zealand’s data capacity.
“For
example, our submarine cable will have three times the capacity of the
existing North/South Island link, to supply the bandwidth which will be
critical for the growth of New Zealand’s information economy,” said
Lindsay Yelland, Telstra group managing director for business solutions
and Telstra Saturn’s new chairman of the board.
Telstra also intends to support its original network investment now
with additional products and services in the future.
The companies intend to sign a final merger agreement in March.