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The Path to Improving Rural Connectivity
As we plan to phase out copper networks in the next decade, more planning is needed to improve rural network connectivity in New Zealand.
According to Anna Mitchell, the executive general manager of Fibre Frontier at Chorus, rural access to the Internet remains a prevalent issue hampering their growth. The lack of long-term plans to improve the country’s rural connectivity infrastructure is pressing – particularly considering the phasing out of copper networks in the next decade.
“While the copper network served us well in the past, it doesn't provide the capacity, speed and reliability Kiwis want today. That's why in areas where fibre is available, we have been retiring copper since 2021 and why we are seeing a dramatic decline in copper connections even in areas where fibre isn't available,” said Mitchell.
Why is rural connectivity important?
With the technology boom over the last decade, access to fast and reliable internet is more important than ever to Kiwis. From online meetings to classes and even streaming videos – the internet has moved from luxury to necessity in society.
According to Mitchell, stable internet is even more important for rural communities, who rely on it for education, healthcare, and economic opportunities. She states that the government should invest more in upgrading rural networks, considering their ambition to double the value of the country’s export earnings and the increasing reliance on rural communities for exports.
Research by NZIER shows that rural consumers with high-capacity (e.g. fibre) broadband can achieve $16.5 billion in economic benefits within 10 years. This is equivalent to $6,500 per household each year.
Currently, over two-thirds of Kiwis in rural areas use the internet without copper. Instead, there is a slow push towards alternative services like fixed wireless and satellite to meet rural connectivity needs. This includes wireless internet service providers (WISPs), mobile network operators, and providers like Starlink.
Since 2021, the country has been slowly retiring copper connections in favour of fibre connections. As a result, copper connections are seeing a dramatic decline even in areas without fibre.
“At its height, the copper network provided connectivity to about 1.7m households, it is now only serving around 10% of this number and continuing to fall. With many urban households and businesses switching to fibre, and in rural to other alternatives like satellite and wireless broadband, it is no longer sustainable or suitable to run the copper network.” Mitchell says.
Mitchell claims that while WISPs and satellites offer a good alternative, they are still unable to match the capabilities of a fibre broadband.
Long-term plan needed
As a telco infrastructure provider, Chorus has invested $40 million to deliver fibre networks to an additional 10,000 households and businesses in 59 local rural communities. This investment is made alongside the government’s own $800 million investment.
Mitchell states that although ‘huge gains have been made’ through these investments, there’s still more work to be done. Without a long-term plan, the rural community will still undergo a ‘significant digital divide’.
“While this has enabled those 10,000 households to effectively win the 'broadband lottery', we believe there needs to be a long-term plan for ensuring that all New Zealanders are able to access the connectivity infrastructure they will need into the future,” she says.
Chorus was a leading partner in the recent TUANZ Rural Connectivity Symposium, where a clear message was sent: more long-term thinking and collaboration are needed across government, industry, and rural communities to ensure their future success.
Mitchell states that open communication is critical, and the nation ‘can’t risk a growing digital divide.’
“As a country, it's worth considering what our expectations are for how far the fibre network should reach, where we expect wireless and satellite to become the default technology, and how we should align our regulatory and investment incentives to achieve this.”
Key Takeaway
With the phasing out of copper-facilitated internet, businesses may see more reliable and faster internet connections that support their operations. Whether in a rural or urban area, businesses can look forward to more opportunities for scaling online.
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