3 Aug 2010

Analyst sees broadband contract being shared

2:02 pm on 3 August 2010

A telecommunications analyst says the fiercely contested contract for the Government's ultra-fast broadband project is likely to go to several contenders working together.

Monday was the final day for competitors to submit detailed proposals for delivering fast broadband to threequarters of New Zealand homes by 2019.

One of the contenders, Telecom, has agreed to split itself in two if it wins the contract.

An analyst with Forsythe Barr, Guy Hallwright, says Telecom has made a sensible decision, considering its existing investment and the $1.5 billion government subsidy at stake.

Mr Hallwright says the Government would not want to leave a major player like Telecom as an outside competitor.