4 November 2024
P Robins
[FYI request #28647 email]
Ref: OIAPG322
Dear P Robins
Thank you for your email of 4 October 2024 requesting the following under the Official
Information Act 1982 (the Act)
I request a copy of the following MBIE briefings to the Minister for Media and
Communications: 2324-3567, 2425-0130, 2324-1920, 2324-3761, 2324-3567.
Please find attached three briefings you have requested. Please note one briefing has been
withheld in full, and that the three briefings have some information withheld, under the
following sections of the Act:
9(2)(a)
to protect the privacy of natural persons, including that of deceased
natural persons;
9(2)(f)(iv)
to maintain the constitutional conventions for the time being which
protect the confidentiality of advice tendered by Ministers of the Crown
and officials;
9(2)(i)
to enable a Minister of the Crown or any public service agency or
organisation holding the information to carry out, without prejudice or
disadvantage, commercial activities; and
In terms of section 9 of the Act, I am satisfied that, in the circumstances, the withholding of
this information is not outweighed by other considerations that render it desirable to make the
information available in the public interest.
Regarding the attachment in Annex One in the briefing:
Draft Cabinet paper ‘Urgent
amendment to support continued fibre uptake’ the Cabinet paper and associated minute of
the decision have already been released on the Ministry of Business, Innovation and
Employment’s (MBIE’s) website, here:
•
https:/ www.mbie.govt.nz/dmsdocument/29810-urgent-amendment-to-support-
continued-fibre-uptake-proactiverelease-pdf
•
https:/ www.mbie.govt.nz/dmsdocument/29811-urgent-amendment-to-support-
continued-fibre-uptake-minute-of-decision-proactiverelease-pdf
As such, this attachment is refused under section 18(d) of the Act.
You have the right to seek investigation and review of my decision by the Ombudsman, in
accordance with section 28(3) of the Act. The relevant details can be found at:
www.ombudsman.parliament.nz
Yours sincerely
Hon Paul Goldsmith
Minister for Media and Communications
Document schedule
Title
Date
Withholding grounds
Marae Digital Connectivity – Funding
Options
14 February 2024
9(2)(a), 9(2)(f)(iv), 9(2)(i)
Meeting with Te Mātāwai regarding 600
MHz
13 June 2024
9(2)(f)(iv)
Draft Cabinet paper ‘Urgent amendment
to support continued fibre uptake’
31 July 2024
9(2)(a), 9(2)(f)(iv)
Further advice on options to utilise the
Remote Users Scheme underspend
29 August 2024
9(2)(a), 9(2)(f)(iv), 9(2)(i)
BRIEFING
Marae Digital Connectivity – Funding Options
Date:
14 February 2024
Priority:
Medium
Security
In Confidence
Tracking
2324-1920
classification:
number:
Action sought
Action sought
Deadline
Hon Melissa Lee
Agree that Crown Infrastructure Partners use 28 February 2024
Minister for Media and
the forecast 2023/24 underspend from the
Communications
Remote Users Scheme to fund 9(2)(i)
the Marae Digital Connectivity
Programme until 9(2)(i)
Contact for telephone discussion (if required)
Name
Position
Telephone
1st contact
Manager,
9(2)(a)
Deborah Salter
✓
Communications Policy
Senior Advisor,
Jon Rolfe
Communications Policy
The following departments/agencies have been consulted
Crown Infrastructure Partners
Minister’s office to complete:
Approved
Declined
Noted
Needs change
Seen
Overtaken by Events
See Minister’s Notes
Withdrawn
Comments:
Released under the Official Information Act 1982
2324-1920
1
BRIEFING
Marae Digital Connectivity – Funding Options
Date:
14 February 2024
Priority:
Medium
Security
In Confidence
Tracking
2324-1920
classification:
number:
Purpose
This paper seeks your agreement to use the 9(2)(i)
forecast 2023/24 underspend from the
Remote Users Scheme to extend 9(2)(i)
of the Marae Digital Connectivity Programme
until 9(2)(i)
Executive summary
In January 2024, you agreed in principle to utilise a forecast underspend from the Remote Users
Scheme to extend the Marae Digital Connectivity Programme
[Briefing 2324-1205 refers]. This
paper seeks your agreement to extend 9(2)(i)
of the Programme and provides more
details on the costs and risks.
Crown Infrastructure Partners forecasts that there is 9(2)(i)
from existing Marae Digital
Connectivity funding and an underspend of 9(2)(i)
for the 2023/24 financial year from the
Remote Users Scheme. 9(2)(i)
9(2)(f)(iv)
9(2)(i)
9(2)(i)
There are risks associated with extending a 9(2)(i)
of the Marae Digital Connectivity
Programme. These risks are outlined below, alongside mitigating factors:
• It may set an expectation for marae trustees and iwi/hapu that this support will continue,
and there is currently no sustainable funding source. 9(2)(f)(iv), 9(2)(i)
Released under the Official Information Act 1982
2324-1920
IN CONFIDENCE
2
9(2)(i)
Your decision is needed by the end of February 2024 because contracts start to expire from 27
March 2024. Crown Infrastructure Partners and Te Puni Kōkiri will communicate your decision
with marae and suppliers.
Recommended action
The Ministry of Business, Innovation and Employment recommends that you:
a
Note that on 3 January 2024, you agreed in principle to utilise a forecast 2023/24
underspend from the Remote Users Scheme to fund Marae Digital Connectivity contract
extensions.
Noted
b
Agree to utilise the forecast underspend of 9(2)(i)
from the Remote Users Scheme for
the 23/24 financial year to fund 9(2)(i)
to the Marae Digital Connectivity
Programme until 9(2)(i)
Agree / Disagree
9(2)(i)
c
Agree / Disagree
9(2)(i)
d
Noted
e 9(2)(f)(iv)
Noted
Released under the Official Information Act 1982
2324-1920
IN CONFIDENCE
3
f
Note that funding Marae Digital Connectivity contract extensions is already within the scope
of Crown Infrastructure Partners’ existing policy mandate and the scope of the Rural
Connectivity appropriation.
Noted
Deborah Salter
Hon Melissa Lee
Manager, Communications Policy
Minister for Media and Communications
Building, Resource and Markets, MBIE
..... / ...... / ......
14 / 02 /2024
Released under the Official Information Act 1982
2324-1920
IN CONFIDENCE
4
Background
Expiry of Marae Digital Connectivity Programme contracts from March 2024
1.
The Marae Digital Connectivity Programme commenced in 2019. A total of 9(2)(i)
has
been allocated under the Programme to cover the costs of installing the fastest available
broadband connection for eligible marae. It has also funded five-years of broadband
subscriptions, the cost of purchasing and installing hardware related to connectivity, service
desk support, and basic training on how to use the hardware.
2.
As of 13 February 2024, 650 out of 888 eligible marae have been connected and there has
been a total of 694 applications. Crown Infrastructure Partners forecasts a total of 690
marae will be connected and receive support from the Marae Connectivity Programme by
the end of the 2024 calendar year.
3.
The contracts with suppliers for the support provided through the Programme will start to
expire from March 2024. While there has been no commitment by the Government to
extend these contracts, we understand marae have an expectation that this support (or a
scaled version of the support) will continue.
Agreement in principle to use funds from the Remote Users Scheme underspend
4.
On 3 January 2024, you agreed in principle to utilise an underspend from the Remote Users
Scheme to fund Marae Digital Connectivity contract extensions
[Briefing 2324-1205 refers]. There is a forecast underspend of at least 9(2)(i)
for the 2023/24 financial year from the
Remote Users Scheme. When combined with the remaining 9(2)(i)
for the Marae Digital
Connectivity Programme, there is 9(2)(i)
available for contract renewals.
5.
This briefing provides advice on detailed options and costings for funding contract
extensions, including scaling and timing. Your decision on a final approach to funding
contract extensions is needed before the end of February 2024 to provide certainty to marae
and suppliers before contracts start to expire (from 27 March 2024).
9(2)(i)
9(2)(f)(iv)
9(2)(i)
. 9(2)(f)(iv)
Released under the Official Information Act 1982
2324-1920
IN CONFIDENCE
5
9(2)(f)(iv)
9(2)(i)
No changes to the existing Crown Infrastructure Partners’ mandate are required
14. No changes to Crown Infrastructure Partners’ mandate, nor the scope of the Budget 2022
appropriation are required to implement either of the options provided above. Funding
Marae Digital Connectivity contract extensions is also already within the scope of Crown
Infrastructure Partners’ existing policy mandate as amended in December 2022.
15. The forecast 9(2)(i)
in available Remote Users Scheme 2023/24 funding is also within the
same Rural Connectivity appropriation that has been used to fund the Marae Digital
Connectivity Programme.
Risks
16. Should you agree to fund 9(2)(i)
for the Marae Digital Connectivity
Programme, then it is worth noting the following risks:
a.
Funding contract extensions sets an expectation of continued ongoing support –
Marae trustees and the iwi/hapu that access connectivity on the marae are likely to
expect this support to be ongoing. This will make any future decisions on whether to
continue funding this initiative 9(2)(i)
more difficult.
Released under the Official Information Act 1982
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IN CONFIDENCE
6
9(2)(i)
b.
9(2)(i)
18. 9(2)(f)(iv)
Next steps
19. Your decision on extending the Marae Digital Connectivity Programme contracts is needed
by the end of February 2024 so there is sufficient lead-in time to extend contracts that start
to expire from 27 March 2024. We will communicate your decision with Crown
Infrastructure Partners.
20. In turn, Crown Infrastructure Partners and Te Puni Kōkiri will communicate your decision
with marae and suppliers. Crown Infrastructure Partners will also arrange any necessary
changes to supplier contracts.
21. MBIE officials will work with your office on developing any intended communications from
your office (i.e., a press release) and provide reactive Q&As should you receive any questions
from the media, marae, or other interested parties.
Released under the Official Information Act 1982
2324-1920
IN CONFIDENCE
7
BRIEFING
Draft Cabinet paper ‘Urgent amendment to support continued fibre uptake’
Date:
31 July 2024
Priority:
Urgent
Security
In Confidence
Tracking
2324-3761
classification:
number:
Action sought
Action sought
Deadline
Hon Paul Goldsmith
Agree to lodge the final version of
8 August 2024
Minister for Media and
the attached draft Cabinet paper by
Communications
8 August for consideration by the
Cabinet Business Committee on 12
August.
Contact for telephone discussion (if required)
Name
Position
Telephone
1st contact
Manager,
9(2)(a)
Deb Salter
04 901 0786
✓
Communications Policy
Policy Advisor,
Edde Harris
04 978 3273
Communications Policy
The following departments/agencies have been consulted
Officials from the Ministry for Regulation, the Ministry of Justice, and Treasury have been
consulted on the proposals in the draft Cabinet paper. The Department of the Prime Minister and
Cabinet has been informed.
Minister’s office to complete:
Approved
Declined
Noted
Needs change
Seen
Overtaken by Events
See Minister’s Notes
Withdrawn
Comments
Released under the Official Information Act 1982
BRIEFING
Draft Cabinet paper ‘Urgent amendments to support continued fibre uptake’
Date:
31 July 2024
Priority:
Urgent
Security
In Confidence
Tracking
2324-3761
classification:
number:
Purpose
To provide you with a draft Cabinet paper for your feedback and for Ministerial consultation, and to
seek your agreement to lodge the final version of the Cabinet paper by 8 August for consideration
at the Cabinet Business Committee meeting on 12 August.
Recommended action
The Ministry of Business, Innovation and Employment recommends that you:
a
Note that you directed officials to progress urgent legislative changes to temporarily continue
the provisions enabling access to shared property for fibre installation in the
Telecommunications Act 2001, which are set to expire on 1 January 2025.
Noted
b
Note that this briefing provides you with a draft Cabinet paper to seek policy approvals for
the above changes to be progressed through the Regulatory Systems (Economic
Development) Amendment Bill.
Noted
c
Agree to lodge the final version of the Cabinet paper, taking into account feedback from you
and from Ministerial consultation on 8 August, for consideration at the Cabinet Business
Committee meeting on 12 August 2024.
Agree / Disagree
Deb Salter
Hon Paul Goldsmith
Manager, Communications Policy
Minister for Media and Communications
Building, Resources and Markets, MBIE
31 July 2024
..... / ...... / 2024
Released under the Official Information Act 1982
2324-3761
In Confidence
1
Background
1.
You have directed officials to urgently progress work on an interim legislative solution to
continue the provisions enabling access to shared property for fibre installation in the
Telecommunications Act 2001. The provisions are due to expire on 1 January 2025. There
continues to be a need for these provisions as fibre uptake sits at 75 per cent across the
existing fibre footprint, and the demand for fibre installations is ongoing.
2.
The long-term operation and scope of the shared property provisions are being considered in
a separate work programme. MBIE will advise you on this shortly, following analysis of
submissions received during consultation on the discussion document
Enhancing
telecommunications regulatory and funding frameworks.
3.
The provisions give fibre providers rights to access shared property to install fibre where
consent of all affected persons is not obtained. The provisions were created to support fibre
uptake. The provisions also include protective measures that balance the impact on property
rights. Protective measures include the ability for affected persons to reasonably object to an
installation and require fibre providers using the provisions to be a member of the prescribed
dispute resolution scheme.
4.
A draft Cabinet paper seeking to continue the shared property access provisions for three
years is attached as
Annex One.
The draft Cabinet paper also proposes to extend the
disputes resolution scheme membership requirement for three years, so that it will remain for
one year after the new expiry date for the access rights. This is to ensure there is enough
time for addressing any residual disputes before the fibre provider exits the disputes scheme.
Legislative vehicle – Regulatory Systems (Economic Policy) Amendment Bill
5.
You are seeking to progress these amendments through the Regulatory Systems (Economic
Policy) Amendment Bill (
RSAB). RSAB has been referred to the Economic Development,
Science and Innovation Select Committee (
EDSI).
6.
The Business Committee has agreed to authorise the EDSI Committee to consider the
amendments you have proposed. This is provided that the amendments are made available
to the EDSI Committee on an Amendment Paper, and that Committee takes submissions on
it. EDSI has called for submissions on the RSAB, submissions close on 5 September 2024.
7.
MBIE has had initial engagement with the Parliamentary Counsel Office (
PCO) on the
drafting of the Amendment Paper. PCO has indicated the amendments can be drafted
quickly to allow the Amendment Paper to be sent to EDSI Committee by the end of August.
Risks and Communications
8.
The proposal to continue the rights at short notice via the RSAB may garner some interest
from media and property owners. This risk is medium and can be mitigated with clear
communications that this proposal is a temporary continuation, with no new elements, while
the long-term future of the rights is under consideration following your recent consultation.
9(2)(f)(iv)
9.
Released under the Official Information Act 1982
2324-3761
In Confidence
2
Consultation
10. The Ministry for Regulation, Ministry of Justice, and the Treasury have been consulted on the
proposals in the draft Cabinet paper and have raised no concerns with the amendments
proposed.
11. This proposal has also received a Regulatory Impact Statement exemption, as the
amendments are a temporary continuation of existing provisions. The Department of the
Prime Minister and Cabinet has been informed.
Next steps
12. We have set out expected next steps and indicative timelines in the table below:
Date
Action
7 August
Minister to provide feedback to MBIE (including from Ministerial consultation) on
draft Cabinet paper
8 August
MBIE to provide final version of Cabinet Paper to your office for lodging
12 August
Cabinet Business Committee
19 August
Cabinet confirmation
Parliamentary Counsel Office drafts amendments.
Week of 26
Amendment Paper sent to EDSI Committee
August
9(2)(f)(iv)
Annexes
Annex One: Draft Cabinet paper ‘Urgent amendment to support continued fibre uptake’.
Released under the Official Information Act 1982
2324-3761
In Confidence
3
BRIEFING
Further advice on options to utilise the Remote Users Scheme
underspend
Date:
29 August 2024
Priority:
Medium
Security
In Confidence
Tracking
2425-0410
classification:
number:
Action sought
Action sought
Deadline
Hon Paul Goldsmith
Agree to utilise the Remote Users Scheme
6 September
Minister for Media and
underspend to enhance resilience and/or fund an
2024
Communications
extension to the Marae Digital Connectivity
Programme.
Agree to close new applications through the Marae
Digital Connectivity Programme and the Remote
Users Scheme on 31 December 2024.
Jenny Marcroft MP
For your information.
Parliamentary Under-
Secretary to the
Minister for Media and
Communications
Contact for telephone discussion (if required)
Name
Position
Telephone
1st contact
Manager,
9(2)(a)
Deborah Salter
✓
Communications Policy
Senior Policy Advisor,
Jon Rolfe
Communications Policy
The following departments/agencies have been consulted
Crown Infrastructure Partners
Minister’s office to complete:
Approved
Declined
Noted
Needs change
Seen
Overtaken by Events
See Minister’s Notes
Withdrawn
Comments
Released under the Official Information Act 1982
BRIEFING
Further advice on options to utilise the Remote Users Scheme
underspend
Date:
29 August 2024
Priority:
Medium
Security
In Confidence
Tracking
2425-0410
classification:
number:
Purpose
To provide you advice on options to utilise a forecast underspend from the Remote Users Scheme
(estimated at 9(2)(i)
and seek your agreement to close new applications for the Marae
Digital Connectivity Programme and the Remote Users Scheme.
Recommended action
The Ministry of Business, Innovation and Employment recommends that you:
a
Note that Briefings 2324-3378 and 2425-0130 sought your agreement to utilise 9(2)(i)
of
the forecast Remote Users Scheme underspend (total underspend estimated to be 9(2)(i)
to extend the Marae Digital Connectivity Programme.
Noted
b
Agree to utilise the Remote Users Scheme underspend to progress the following options
(noting there is insufficient available funding to progress all three):
Option 1: Enhancing the resilience of rural mobile network
Agree / Disagree
infrastructure by grant funding battery upgrades in rural areas, at
an
estimated cost of 9(2)(i)
Option 2: Enhancing the resilience of rural and/or urban mobile
Agree / Disagree
network infrastructure by establishing a contestable fund for a
range of upgrades.
Either the full 9(2)(i)
could be utilised
or this option can be scaled to accompany Option 1. We do not
recommend scaling this option to accompany Option 3 as Crown
Infrastructure Partners has advised that the administrative costs of
a contestable fund would mean an amount below 9(2)(i)
would
not be advisable.
Option 3: Extend the Marae Digital Connectivity Programme to
Agree / Disagree
cover some ongoing connectivity costs for marae connected under
the Programme 9(2)(i)
9(2)(i)
from the forecast Remote User
Scheme underspend (subject to updated quotes) and 9(2)(i)
of existing funding at a total estimated cost of 9(2)(i)
c
Note that if you agree to utilise the underspend for resilience enhancements and funding was
provided for non-rural telecommunications infrastructure (option 2),
you will need to seek the
Minister of Finance’s approval (as this would not be in scope of the current Rural
Connectivity appropriation from which the underspend is sourced).
Released under the Official Information Act 1982
2425-0410
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1
Noted
d
Agree for Crown Infrastructure Partners to close new applications for the Marae Digital
Connectivity Programme and the Remote Users Scheme on 31 December 2024.
Agree / Disagree
Deborah Salter
Hon Paul Goldsmith
Manager, Communications Policy
Minister for Media and Communications
Building, Resource and Markets, MBIE
..... / ...... / 2024
29 / August / 2024
Released under the Official Information Act 1982
2425-0410
In Confidence
2
Background
1.
We provided you with advice on options to extend the Marae Digital Connectivity Programme
[Briefings
2324-3378 and
2425-0130 refer]. As part of this, we recommended utilising
9(2)(i)
out of the forecast Remote Users Scheme underspend to extend the Marae Digital
Connectivity Programme. The funding would be used to pay for 9(2)(i)
2.
Crown Infrastructure Partners (
CIP) had previously estimated the total forecast Remote
Users Scheme underspend to be 9(2)(i)
but now estimates it to be closer to 9(2)(i)
Other options for Remote Users Scheme Underspend: resilience upgrades
3.
You have requested further advice on options to utilise this forecast underspend. We
consider the most viable alternative option to utilise 9(2)(i)
to enhance the resilience of mobile network infrastructure.
Annex One provides a summary
of other options we considered, but do not recommend progressing.
4.
The 9(2)(i)
could be targeted at improving back-up power capacity on mobile
sites, for example, longer-life batteries and new generators, and/or the provision of
temporary telecommunications infrastructure. This could be in the form of grant funding for
rural mobile sites operated by the Rural Connectivity Group (
RCG) or co-funding for mobile
sites operated by individual mobile network operators in either rural or urban areas. RCG
towers are those delivered under the Rural Broadband Initiatives and Mobile Blackspot
Funds.
Cell tower resilience upgrades would support improved public health and safety outcomes
5.
Batteries on most cell sites in New Zealand are generally designed to last between four to
eight hours. This prevents network disruptions in the event of short-term power outages.
6.
From a health and safety perspective, the first few days after a natural disaster are often the
most critical. On this basis, there may be a case for government investment to support
resilience upgrades for mobile infrastructure. This would:
a.
provide more time for people to contact emergency services
b.
support the emergency response after a natural disaster
c.
support mobile network operators to deploy generators or temporary infrastructure to
manage the impact of prolonged power outages.
Approach to enhancing resilience on cell towers
7.
There are broadly two options when considering an approach to enhancing resilience on cell
towers:
a.
grant funding battery upgrades in rural areas, and/or
Released under the Official Information Act 1982
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In Confidence
3
b.
establishing a contestable fund for a range of upgrades in rural and/or urban areas (for
example, battery upgrades, generators and temporary telecommunications facilities)
8.
We have provided further detail about these options below. The table in
Annex Two provides a summary of these options alongside the option to extend the Marae Digital
Connectivity Programme.
Grant funding battery upgrades in rural areas
9.
CIP already has work underway to upgrade batteries on 44 RCG mobile towers and six
mobile network operator hub sites in regions most impacted by weather events over the last
year. Most of these upgrades are in the Hawke’s Bay and Gisborne regions, with other
upgrades in Northland, Marlborough Sounds, West Coast, Waikato (Coromandel), and
Manawatū.
10. The upgrades are designed to keep mobile sites operational for approximately 24 hours in
the event of main power outage. CIP has budgeted 9(2)(i)
per battery upgrade at a total
cost of 9(2)(i)
for all 50 towers.
11. CIP has identified a further 58 vulnerable rural mobile towers for future upgrades in these
regions at an estimated cost of an additional 9(2)(i)
9(2)(g)(i)
CIP could also consider
extending the regions eligible for battery upgrades through this programme. Utilising the
funding for battery upgrades on RCG sites would be within scope of the Rural Connectivity
appropriation.
Establishing a contestable fund for mobile resilience upgrades in rural and/or urban areas
12. The remaining funding 9(2)(i)
dependant on scope of grant funded RCG
upgrades) could then be utilised to develop a contestable fund with criteria to improve the
resilience of mobile network infrastructure. This would enable industry to submit applications
to co-invest in a range of telecommunications resilience enhancements in both rural and non-
rural areas. A similar approach was taken by Australia after the 2019–2020 bush fires
through their Mobile Network Hardening Program.
13. Note that we would need engage with the Treasury on any necessary changes to the
appropriation as resilience upgrades for non-rural areas would be outside of the scope of the
Rural Connectivity appropriation. Our initial view is that the appropriation could be amended
with only the Minister of Finance’s approval, but we wil confirm whether a Cabinet decision
may also be needed with the Treasury.
Risks
9(2)(g)(i)
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4
9(2)(g)(i)
Closing new applications for the Remote Users Scheme and the Marae Digital
Connectivity Programme
16. We previously sought your decision on closing new applications for the Remote Users
Scheme and the Marae Digital Connectivity Programme [Briefing 2324-3378 refers]. No end
date was set for applications to these programmes, as the intention was to end applications
when funding was fully allocated.
17. There is now very limited uptake for new connections for these programmes. In the June
2024 quarter, CIP received only 20 eligible applications from individuals for funding through
the Remote Users Scheme and connected one new marae through the Marae Digital
Connectivity Programme. More than three-quarters of eligible marae are now connected
under the marae programme and the remaining are unlikely to seek connection for a variety
of reasons. Therefore, CIP and MBIE recommend closing them to new applications on 31
December 2024. This will provide sufficient time for CIP to communicate this publicly.
Next steps
Resilience enhancements
18. If you agree to progress further work on funding resilience upgrades to rural mobile
infrastructure, we will develop a policy mandate for you to send to CIP, asking them to
undertake this work.
19. Should you agree to development of a co-investment fund for rural and non-rural resilience
enhancements to mobile infrastructure, we will engage with the Treasury on the processes
required to amend the scope of the appropriation.
Marae Connectivity
20. If you agree to extend the Marae Digital Connectivity Programme, then we will seek updated
quotes from Spark. We will provide you with a further update if these renewed quotes mean
the funding is not sufficient to cover the proposed renewal timeframe.
21. If you decide not to progress further work to extend the Programme, then we will work with
CIP and Te Puni Kōkiri to develop transition arrangements and communicate end dates to
marae.
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In Confidence
5
Annex One – Other investment options considered but not recommended
Fibre expansion
•
We considered the establishment of a contestable fund to support some small-scale,
targeted expansions of fibre backhaul to help address capacity restraints on fixed wireless
networks. However, we do not recommend progressing this option given:
a.
the significant costs involved in expanding fibre further mean that 9(2)(i)
would
only have a small impact 9(2)(f)(iv)
b.
rural households and businesses on congested networks now have the option of high-
speed internet through low earth orbit satellite, and
c.
there are existing commercial incentives on the industry to expand fibre further.
Fibre resilience
•
We also considered utilising the underspend for fibre resilience upgrades, such as an
additional fibre loop to an area prone to natural hazards (such as severe weather and slips).
For example, CIP indicated that the underspend could help to fund a new fibre route in the
Coromandel (on Tapu Coroglen Road), closing a ring in the area for resilience. This would
also enable the provision of additional RCG mobile towers and connect additional end users
in remote areas currently without terrestrial broadband or mobile coverage.
•
9(2)(f)(iv), 9(2)(i)
While the investment could have a significant
impact for a particular community, this may not deliver the greatest net benefit to New
Zealanders. CIP has previously identified 18 different options across New Zealand for
improving resilience by extending fibre and building fibre rings, at varying costs.
Extending terrestrial mobile coverage
•
CIP advised that it is continuing to receive some requests from communities for new RCG
mobile sites in areas with poor terrestrial mobile coverage. Some of these sites are being
assessed as part of the RCG towers funded through the allocation of 3.5GHz spectrum.
However, there will still be some areas without terrestrial mobile coverage, particularly more
remote parts of the country, where communities still consider there is a need for further
government investment.
•
We do not recommend further investment in extending terrestrial mobile coverage at this
time. The number of households likely to be captured by further extensions of terrestrial
mobile coverage beyond existing government-funded programmes would in the 10s, not
100s, and so the estimated 9(2)(i)
cost per mobile tower is unlikely to justify the benefits.
Mobile network operators also plan to introduce satellite to mobile services in the coming
years, which shows promise in helping to address terrestrial mobile black spots from a public
health and safety perspective.
Released under the Official Information Act 1982
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In Confidence
6
Annex Two – Overview of options to utilise the Remote Users Scheme underspend
Option description
Summary of benefits
Expected costs
Next steps
Option 1: Grant funding battery
Provide more time for people in rural areas to contact emergency
CIP has budgeted 9(2)(i)
per battery
We can provide you with an updated policy mandate to
upgrades in rural areas
services in the event of main power outage. Rural areas often
upgrade. If they were to upgrade the
authorise utilise a portion of the Remote Users Scheme
(particularly RCG or rural hub
experience longer power outages after a natural disaster, as the
batteries on the 58 vulnerable rural mobile
underspend to fund these upgrades, which would be rolled out
sites)
priority of lines companies is to restore power to urban or densely
towers they have identified that are not
over 24/25 financial year. This would not require changes to the
populated areas first.
currently receiving upgrades, the estimated
scope of the existing appropriation.
cost would be 9(2)(i)
Support the emergency response after a natural disaster.
Support mobile network operators to deploy generators or temporary
infrastructure to manage the impact of prolonged power outages.
Option 2: Contestable fund for
Health and safety benefits for Option 2 are similar to Option 1,
Either the 9(2)(i)
could be
We would engage with the Treasury on the processes required
a range of resilience upgrades
dependent on the mix of investments and particular criteria developed
utilised or this option can be scaled to
to amend the scope of the appropriation to establish this fund.
for mobile infrastructure in rural
for the contestable fund.
accompany Option 1. We do not
Our initial view is that the appropriation could be amended with
and non-rural areas
recommend scaling this option to
only the Minister of Finance’s approval, but we wil confirm
A competitive tender approach would help to ensure we get the right
accompany Option 3 as Crown
whether a Cabinet decision may also be needed with the
(for example, battery upgrades,
mix of investment into resilience enhancements, allowing an
Infrastructure Partners has advised that the
Treasury.
generators and temporary
assessment of the highest net benefit.
administrative costs of a contestable fund
telecommunications facilities)
A co-investment approach (ie on 1:1 basis) also helps to ensure value
would mean an amount below $5 million
for money, resulting in more investment into resilience upgrades. It
would not be advisable.
also helps to ensure industry has a voice in investment decisions,
given network operators are best placed to help establish the right mix
of investments.
Option 3: Marae Digital
Provides digital inclusion and resilience benefits to communities, iwi
9(2)(i)
from the forecast Remote User We will seek updated quotes from Spark. We will provide you
Connectivity Programme
and hapū across New Zealand. Many marae also act as hubs for rural
Scheme underspend (subject to updated
with a further update if these renewed quotes mean the funding
and remote communities.
quotes) and 9(2)(i)
of existing funding
is not sufficient to cover the proposed renewal timeframe.
9(2)(i)
at a
total estimated cost of 9(2)(i)
Data provided by Spark shows the connections at marae are being
CIP would communicate with marae connected under the
well utilised.
Programme to inform them of your decision and action the
extension of services.
Released under the Official Information Act 1982
2425-0410
In Confidence
7
Document Outline
