Project progress, while positive, is slow and already behind schedule with both countries currently focused on establishing the administrative structures required to manage these large multibillion dollar projects, along with the methodology for awarding contracts.

New Zealand

In New Zealand, the Government received more than 100 submissions for its plan to spend up to $NZ1.5 billion over the next ten years, which will be topped up to $NZ3 billion from private sector investment, to run fibre to the doorsteps of schools, hospitals, businesses and private homes.

Telecom has tabled two options with the Government: a national network of ducts available to all operators deploying fibre or extending its current fibre rollout. Telecom reports that both proposals will focus on connecting 2,000 schools and all hospitals to the fibre network within two years of work starting, while the remaining 600 schools would be connected within the following six months.

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Vodafone, having initially supported the plan, has also now come up with its own version of how the broadband rollout should take place, suggesting that the Telcos and infrastructure companies join together to invest in a single, ultra-fast broadband network.

Meanwhile, Electricity Lines companies and local fibre operators, including Vector, Northpower and WEL Networks, who all have existing infrastructure and expertise to support fibre rollout, have joined forces to form the Regional Fibre Group to support the Government plan.

The New Zealand Government has formally announced its invitation for private investors to co-invest and match the government’s $NZ1.5 billion investment in the planned broadband infrastructure rollout, with a partnership in a local fibre company. Expressions of interest were lodged by 13 of November with a final formal proposal by 29 January 2010.

The New Zealand trenchless industry remains poised to boom on the back of a large amount of underground fibre network, despite scheduling issues and debate around the final estimated project cost.

Australia

In Australia the Federal Government has announced plans to form a new company that, together with the private sector, will invest up to $A43 billion over eight years to build a high-speed broadband network. The Government will be the majority shareholder, but will sell down its interests within five years of the new network becoming operational, and the private sector can invest via cash or the contribution of assets.

The formal call for tenders for the first part of Australia’s National Broadband Network (NBN) in Tasmania was made in mid-July by Tasmanian Premier David Bartlett and Federal Communications Minister Senator Stephen Conroy, when they officially opened Basslink’s fibre optic cable across the Bass Strait. Senator Conroy says the Tasmanian leg of the rollout will deliver wholesale-only, open-access broadband network services in the second quarter of 2010.

In communication

While it is not yet clear in either country exactly how much trenchless work will be generated by the projects, it is anticipated that it will be extensive and will generate resurgence in the trenchless industry.

Many other countries around the world are undertaking similar investments in broadband, and indeed in other services and utilities and while our industry may be challenged presently, we are hearing and seeing positive signs that the industry is set to prosper in the medium term. Certainly, TerraMacs has seen a dramatic lift in enquiry within the last couple of months, suggesting that contractors around the world are preparing themselves for investment in new equipment to support the upcoming work.