Investment happens when companies or organisations establish that there is a positive business case for a proposal. Since many New Zealand companies already subscribe to broadband services, business interest in Ultra Fast Broadband (UFB) services will depend on the likely impact on the bottom line. If companies can’t see the net benefits, then business uptake will be slow.

Wellington Regional Council asked Network Strategies what really is the impact of very fast broadband services on business performance and how this affects economic growth.

We found that fibre services offer potential for transformative change in business processes and models. Evidence from highly-fibred regions overseas showed that fibre technology drives innovation and improves competitiveness, enabling regions to attract and retain more businesses and investment. Furthermore, studies are now emerging which indicate that there are linkages between fibre uptake and improvements in socio-economic conditions at both the regional and national level.

So what can local councils do to make a difference in uptake? While it appears that New Zealand firms in general are UFB-aware, we highlighted significant gaps in understanding the potential business advantages it has to offer (beyond simply improving current Internet performance). With no direct commercial vested interest, regional and local councils are in a unique position to engage businesses on UFB, through developing awareness campaigns and educational initiatives.

We found that industry case studies serve as a key tool to demonstrate the benefits of fibre-based services, including increased productivity, more efficient use of existing and emerging applications, and possibilities for innovative and transformative change. Naturally the case study weighs up the benefits against the costs, and with attractive commercial UFB products becoming more widely available, firms should see the light sooner rather than later.

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About Network Strategies

Network Strategies works at the forefront of the telecommunications revolution, delivering advice and insight to operators, manufacturers and governments. From offices in Auckland, London, Melbourne and Wellington, Network Strategies staff provide strategic consultancy to clients throughout the Asia-Pacific region, Europe and North America, offering a complete global outlook on key issues affecting all players in the telecoms sector.

Media contacts

New Zealand: 
Suella Hansen 
Tel: +64 9 522 1702 
E-mail: s.hansen@strategies.nzl.com

Australia: 
Noelle Jones 
Tel: +61 3 9830 0152 
E-mail: n.jones@strategies.nzl.com