We know faster broadband has the potential to lift GDP by about 1.5%, and we know that broadband penetration is now seen as a key economic indicator.
While good progress has been made in major cities upgrading broadband availability, I have long advocated the need to bring faster broadband and better connectivity to rural communities. I'm equally convinced of the benefits it will bring to other sectors of our economy and society. Over our first term, the Government made excellent progress toward the delivery of faster broadband services. We delivered on our commitment to provide $1.35 billion for ultra-fast broadband and $300 million for the rural broadband initiative.
We began the digital switchover and re-stacking projects, and planned allocation of the 700 Mhz band to enable better data access on the go, a move that has the potential to bring even faster speeds and better coverage to rural and provincial areas. A key focus for me for this term will be making sure the spectrum is available for industry use as the digital switchover is completed, and that the digital dividend will be commercialised in the way that is of most benefit to New Zealand.
In many ways, it can be said that the preparatory work has been done. My focus now is on making sure uptake of UFB and the RBI is maximised to deliver the productivity gains and other benefits the Government expects to achieve from its investment.
We see little point in laying fibre optic cable in the ground or building new cell towers if the infrastructure doesn't ultimately deliver productivity gains and better outcomes.
I have commented previously that if Steven Joyce was the Minister of getting the infrastructure built, I aim to be the Minister of making it productive, realising of course that delivering on the potential of UFB involves a 5-10 year outlook beyond the build cycle.
A host of factors will influence the success of the initiatives – including retail pricing, the quality and speed of services, access to content and innovation applications, along with effective promotion and encouragement in key areas.
None of these are a silver bullet on their own. However, I'm confident that, together, government and industry can deliver on the potential of fast broadband.
Overseas experience tells us that the greatest benefits are to be gained from encouraging early uptake by schools, health providers, government agencies and businesses.
That is why these sectors are the focus of the Government's five-point broadband action plan and are a priority for deployment. They are also the areas where the Government has the greatest ability to influence uptake.
