In a presentation to institutional investors yesterday, Chrous, the leading telecommunications company in New Zealand projected that at least 75% of premises will be connected using FTTP/B by the end of 2020 — in sharp comparison with the 26% planned for the Coalition’s Multi-Technology Mix National Broadband Network (MTM NBN).

In a world where the majority of the world is moving towards a full-fibre deployment to replace existing infrastructure, NBN Co and the Coalition’s policy takes the reverse approach in phasing out an FTTP rollout in favour for a inferior FTTN network topology. Under the MTM model, brownfields Fibre to the Premises rollout will stop by CY2018 with the remainder of the rollout being FTTN-only. This means that under this model as bandwidth demands grow, Australians will be provided an upgraded service without the capacity and capability of delivering the demand needed.

In the contrary however, Chrous NZ and other telcos in New Zealand will be taking the initiative of rolling out Fibre to the Premises to deliver the demands of the present and the future. As indicated by the graph on their second slide, four providers will continue to pass premises incrementally into 2020 — with Chrous leading the way with a stable forecasted rollout rate.

Likewise, while Chrous is projecting continual efficiency savings in building a fibre network, NBN Co denied any cost saving measures can be implemented or found until 2017-18 when the rollout itself will stop. This is again, at odds with worldwide comparisons.

Congratulations to New Zealand for recognising that FTTP is the future. Yes, while we have to concede that a Fibre to the Node rollout will happen… the Coalition should really recognise the technological advantage of having fibre to the premises and the extreme reliability and upgradability of the technology. xDSL technologies will continue to limit Australia’s productivity into the future and will always be limited by distance.

Rather than phase out an FTTP build half-way through the NBN build, the network technology should really be ramped up as the demand grows. There is absolutely no logic in their rollout plans, at all.

New Zealand truly deserves to get a 75% FTTP deployment, what a pity no one in power sees the value of it in Australia today.