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Government Debt Funded Network
Posted by rod@drury.net.nz in Communications at 12:49 pm on Saturday, 16 June 2007

National MP Craig Foss spots the inconsistency

Govt. Debt funded internet expansion

A Government owned data transmission company is using debt to fill in some of the gaps of New Zealands internet network. HHHmmmm…..I have heard the Minister of Comminications rant and rave against using debt for such expansion countless times. Maybe he has changed his mind?

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Comments(4)

    Comment by Ben Kepes at 1:17 pm on 16 June 2007

    But small pseudo shifts through a semi arms length SOE is a different political sell from full scale government investment in infrastructure

    A better example of inconsistency is the fact that central government is prepared to fund transport infrastructure while shying away from funding the information transport infrasturcture




    Comment by Rod at 9:18 am on 18 June 2007

    From ComputerWorld: Is our new SOISP kosher?

    http://computerworld.co.nz/news.nsf/news/1D65EA4D912A7A2DCC2572FA00835566




    Comment by Raf at 11:55 am on 18 June 2007

    Imagine free broadband and wireless network nationwide (ok with some bandwith limits).

    Now that would be a statement of intent.




    Comment by Paul Spence at 11:49 am on 22 June 2007

    It seems to make a lot of sense for an existing company with expert telecommunications knowledge to pick up the mantle.

    Many infrastructure related businesses fund growth through debt. If Kordia sees an opportunity and can raise the capital resources, deploy the technology on a commercial basis and then turn a profit, that would appear to be a good outcome.

    I don’t think anyone has yet made a sufficiently well researched economic business case for a nationwide, government funded (free?) broadband network rollout and therefore I don’t anticipate the government stumping up a billion bucks in cash for the project anytime soon.

    In the short term a more pressing problem involves addressing the capacity bottleneck sending data offshore.