97.8% of New Zealanders will have access to faster broadband by end 2019

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1 JUNE 15 BROADBAND DEPLOYMENT UPDATE 97.8% of New Zealanders will have access to faster broadband by end 2019 (under phase 1 of UFB and RBI) UFB Almost 54% of the build in UFB areas has been completed. There are over 106,000 users connected to UFB, a 24% increase in connected users since end March UFB uptake is 14.6% see page 2 Whangarei 100% Auckland 39% Pukekohe 43% Waiuku 59% Hamilton 83% Cambridge 100% Te Awamutu 100% Tokoroa 100% Taupo 100% New Plymouth 85% Hawera 100% Wanganui 100% Feilding 32% Palmerston North 62% Levin 33% Kapiti 30% Wellington 35% UFB DEPLOYMENT PROGRESS: Waiheke Island 42% Tauranga 90% Rotorua 90% Whakatane 61% Gisborne 36% Napier/Hastings 45% Masterton 89% Rural Broadband Initiative (RBI) More than 81% of tower upgrades have been completed. RBI uptake is 33.1% see page 3 Priority Users Over 96% of the programme target for schools to be ready for service has been reached. see page 5 Blenheim 100% Nelson 56% Greymouth 83% Christchurch 47% (incl Rangiora) Ashburton 100% Timaru 100% Oamaru 100% Dunedin 53% Queenstown 82% Invercargill 60% BROADBAND@MBIE.GOVT.NZ

2 ULTRA-FAST BROADBAND INITIATIVE (UFB) PHASE 1 2 UFB phase 1 is connecting 75% of New Zealanders with fibre to the premise by end Fibre will be capable of peak speeds of at least 100Mbps. Highlights 87 retail providers are actively offering UFB services. UFB connections are now available in 33 candidate areas. For information on whether you can connect to UFB, please contact your retail service provider or go to TABLE 1: UFB Progress at June Quarter 2015 FIGURE 1A: UFB end users able to connect this quarter End users able to connect Connected users 105,720 20, ,253 1,340,000 Total to date 724, , ,000 1,000,000 1,500,000 Programme To Date Total Programme Target (2019) FIGURE 1B: UFB end users able to connect Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Plan Actual UFB: TOURISIM BENEFITS FROM UFB Base Taupo General Manager Laura Crowther says most of the 3,500 international travelers that walk through their doors each month have an insatiable appetite for data and social media. Thanks to UFB their need for keeping in touch with their families back home via Skype or FaceTime, booking tours, or streaming their favorite television programme can now all be achieved seamlessly without drop outs or buffering. And, of course, our guests continual uploading of their photos to sites like Facebook and Instagram helps showcase Taupo and New Zealand to the world. Also, our booking and accommodation operating systems are all online, so UFB makes for a much more efficient business to run. And with our other 13 Base backpacker properties being spread over New Zealand and Australia, it has really streamlined communication.

3 RURAL BROADBAND INITIATIVE (RBI) PHASE 1 RBI phase 1 is connecting 90% of homes and businesses (outside UFB areas) with broadband at peak speeds of at least 5Mbps by 2016 and extending mobile coverage to rural areas across New Zealand. This is through fixed wireless and improved copper services (some rural homes and businesses will be able to choose between the two services). 3 TABLE 2: RBI Progress at June Quarter 2015 End users able to connect * Connected users Total to date 269,820 89,187 *End users able to connect to both fixed wireless and enhanced copper have been counted once Vodafone s role is the provision of fixed wireless broadband capable of peak speeds of at least 5Mbps and improved mobile coverage. TABLE 3: Vodafone Progress at June Quarter 2015 this Quarter Towers Upgraded New Towers Installed Households Covered (Approximate) 6 3 3,664 Total to Date ,814 FIGURE 2: Vodafone RBI Towers Upgraded New Towers Installed There were 1,460,906 unique Vodafone mobile customers recorded as active on the new towers in the June 2015 quarter Programme To Date Total Programme Target (2016) CHORUS role is the deployment of fibre to cabinets, offering improved broadband services. Some residences will receive copper-based broadband speeds of up to 20Mbps. TABLE 4: Chorus Progress at June Quarter 2015 FIGURE 3: Chorus RBI this Quarter Lines Upgraded (Approximate) 8,103 Lines Upgraded (Approximate) 93, ,969 Total to Date 93, ,000 80, ,000 Programme To Date Total Programme Target (2016)

4 RURAL BROADBAND INITIATIVE (RBI) 4 RBI: TECHNOLOGY HELPS THE ENVIRONMENT Winners of the Ballance Farm Environmental Awards 2014, Ashburton dairy farmers Mark and Devon Slee say being connected to RBI wireless broadband is crucial to their business and allows them to document and analyse everything happening on the farm. We have a computer in each of our cow sheds which runs our stock identification system and all our animal welfare records. High speed broadband allows farm data to be recorded on a digital hub accessible from anywhere, any time. Melrose Dairy uses GPS technology to track precisely where fertiliser and effluent has been applied. Electronic sensors buried in the soil record the moisture content of the ground, ensuring the pivot irrigators apply just enough water to keep the grass and fodder crops growing, but not too much. Mark says taking care of the environment does not have to be to the detriment of profitability, and Melrose Dairy was proof of that. If we can be more efficient, it will be more profitable for us as well.

5 PRIORITY USERS To be connected with fibre capable of peak speeds of at least 100Mbps through the UFB or RBI. Remote schools will receive point-to-point wireless connections capable of peak speeds of at least 10Mbps. 5 TABLES 5A & 5B: Schools Progress at June Quarter 2015 this Quarter Schools with fibre past the school gate Schools ready for service Total to date Schools with fibre past the school gate Schools ready for service UFB RBI UFB 1,403 1,311 RBI* 1,020 1,013 Remote schools n/a 1 Remote schools n/a 52 Note: The programme target covers state and state-integrated schools. It includes schools that have been connected to fibre outside of the UFB and RBI. FIGURE 4: Total UFB, RBI and Remote Schools ready for service 2,376 2, ,000 2,000 3,000 Programme To Date Total Programme Target (2016) FIGURE 5: Total rural hospitals ready for service Programme To Date Total Programme Target (2016) Note: The number of hospitals includes eight rural hospitals connected to fibre prior to the establishment of the RBI. PRIORITY USER: DROPOUTS FOR REMOTE ACCESS NOW A THING OF THE PAST Mt Cook Alpine Salmon operates in Tekapo, Twizel, Queenstown and Timaru, and has staff further afield at locations including Nelson and Auckland. It opened a new processing plant in Timaru in November, 2013 which is now the data hub for the organisation. Mt Cook Alpine Salmon chief executive David Cole says the installation of UFB means the company s server can now store everything from accounting and customer relationship management systems to the data off the line from the processing plant. The data collected is production information from raw material reception, through to processing, packing, bar coding and final dispatch. The system allows for live tracking of production speeds and quantities, meaning there is full traceability from the farm to the end user. Alongside faster access to our IT system, we have also implemented a voice over IP phone system, giving us complete control and flexibility over the digital communications, helping to deliver efficiency and cost savings across the business.

6 ƨwebsite ƨ The quarterly broadband update is available in pdf format through the Ministry s Economic Development website: fast-broadband/deployment-progress ƨdata ƨ Sources The broadband deployment update is compiled with information from Crown Fibre Holdings and the various companies mentioned in this update. This update covers the June quarter (1 April 30 June) ƨtechnical ƨ Note The regional breakdowns displayed on page one ( UFB deployment progress by region ) have been altered to provide a more detailed view of deployment by region. This amendment has been made to ensure consistency with the regional deployment factsheets produced annually by the Ministry. ƨnext ƨ Release The next quarterly broadband update is scheduled for release November Please forward any queries to: ICT Policy and Programmes Resources, Energy and Communications Branch Ministry of Business, Innovation and Employment P O Box 1473, Wellington, New Zealand Telephone: broadband@mbie.govt.nz MB