Labour

Broadband

While New Zealand lumbers towards speeds of 10-20 megabits per second across old copper wires, countries at the top of the OECD are targeting speeds between 100 megabits per second and one gigabit per second across fibre access.

1 - Using a scale of 1 to 10, where 1 is irrelevant and 10 is critical; please rate the importance of an Internet-enabled digital future to New Zealand’s society and economy?

10 - No country has more to gain from the digital revolution than New Zealand. Through it we overcome our remoteness, leverage our inventiveness and show off our uniqueness.

Through our actions over the last three years and prior, this Labour-led government has led the way in transforming the ICT sector to benefit all New Zealanders.  Under Labour, reform and investment will continue to accelerate over the next three years.

2 - Should the investment model for rolling out fibre access be private sector or public private partnership, and what is the appropriate role for government, both central and local?

Labour supports a co-investment model, our recent reforms underpin this.  Operational Separation has already seen Telecom commit $1.4billion to NGN rollout and other undertakings.  Other investment across the industry brings the known total to greater than $3billion over the next several years.  Labour’s pro-competitive reforms are undeniably rejuvenating the industry and bringing faster, cheaper broadband to more New Zealanders.

Labour seeks to leverage further private sector co-investment via the broadband investment fund which provides government co-investment in private broadband projects up to a maximum of 50% of the project costs.

Labour’s aim is that access to modern ICT infrastructure is available and affordable to all New Zealanders. Labour is already investing $500 million across New Zealand in a first five year down payment for fast broadband.  A similar sized investment is expected in the second five years, taking the total potential Crown investment in fast broadband to over $1 billion with a projected private sector investment of around an additional $2 billion.

Through our reforms and investments, Labour will ensure that New Zealand’s telecommunications infrastructure is well-prepared for the future, and that we will not have to relive the chronic underinvestment and monopoly environment of previous decades.

Labour’s solution is not driven by the incumbent.  A critical aspect of the Broadband Investment Fund is that it is technology neutral and fully contestable so is open to the best projects and the best technologies in each part of New Zealand.  Because the government has not specified any particular returns we are in a strong position to determine which providers and projects to support.

The government has committed to promoting solutions that take into account local characteristics and support competition across a range of technologies.   Local government also has an important part to play in this process and we have encouraged bidders to the fund to work with local government on their applications. Local government bodies themselves can apply for funding as well.

Adopting a single nationwide regulated utility, as National appears to prefer, would inevitably favour the incumbent and would put any government in an extremely weak bargaining position.  In addition, based on past neglect, National lacks the credibility to stand behind its heavy-handed plan.

3 - Do you consider the existing international connectivity to be a bottleneck? If yes, what options would you pursue to deal with this?

Labour believes that the priority for improving our international connections is by facilitating the deployment of a trans-Tasman cable.  This will be via a competitive tender process run by REANZ.

$15 million has already been allocated for co-investment in the project.  This will provide increased resilience to New Zealand’s international communications links and put downward pressure on pricing of international bandwidth.

Labour will be encouraging further investment in our international links.  Increased competition in the market will drive prices down further and provide more choice for consumers.

Infrastructure

Passive infrastructure, such as ducting and laying the fibre cable itself, can account for up to 70 percent of fibre access deployment costs.

4 - What policies would you support that would encourage co-investment and/or coordination in laying fibre cables?

Labour’s pro-competitive regulatory framework, widely regarded as equal to international best practice, has created an environment where private investment flow into New Zealand telecommunications have doubled per annum and our growth rate in broadband connections is the 6th fastest in the OECD.

However, Labour recognises there is a substantial public benefit to accelerating investment further providing the way this is done supports the competitive environment rather than undermining it.  If intervention is not well designed it would simply crowd out private sector flows with taxpayer funds benefiting nobody.

Accordingly the Labour-led government’s Broaband Investment Fund is technology neutral, project-specific, highly contestable and credibly supports the pro-competitive policy framework.

The government co-investment is based on achievement of project specific criteria that prioritises open access to ducting or dark fibre (particularly open access ducts with associated open access dark fibre).

Labour has already committed $500million as a down payment on 10 year plan that will see fibre equivalent ultra fast broadband rolled out to 80% of New Zealanders.  Because of its best practice design features, a two to one private co-investment rate is expected.  Therefore targeting $2 billion of private sector investment on a total $1 billion Crown investment combined with the known $3 billion investment underway.  This additional $3 billion will take New Zealand a very long way to achieving our superfast broadband goals while minimising the risk to scarce taxpayer funds in a challenging international economic environment.

5 - Would you support requirements on duct access, sharing of fibre access inside buildings, and requirements to install fibre in new buildings?

Labour supports a model where the level of government co-investment is based on achievement of certain criteria for specific projects.

Applicants whose greatest project costs relate to (open access) ducting or dark fibre (particularly open access ducts with associated open access dark fibre) should be eligible for larger proportions of government funding.

Local Government New Zealand is currently working with the Telco industry to complete a Broadband Friendly Protocol which will consider local planning issues and requirements.

Applicants for whom more than 75% of their project costs relate to deploying open access ducts with associated open access dark fibre will be eligible for the highest rate of government funding (up to 50%).  Applicants for whom more than 75% of their project costs relate to deploying open access ducts alone, open access ducts with closed access dark fibre, or open access dark fibre will be eligible for a slightly lower rate of government funding (up to 33%). 

Applicants whose project costs are otherwise composed (e.g. because they relate mainly to bearer services) will be eligible for only up to 10% government funding. It is emphasised that these percentages are maximums and that preference will be given to projects that offer higher leverage ratios.

Rather than requiring all applicants to offer open access to competitors at the duct and/or dark-fibre levels, the revised criteria put the onus on applicants to choose the levels at which they wish to offer open access.  This will encourage greater participation in the application process.  At the same time, to balance this, the revised criteria stress that preference will be given to those applicants who offer open access at the deepest layers.

Digital Divide

The term ‘Digital Divide’ refers to the gap between those with effective access to digital and information technology and those without. The recent World Internet Project survey said that Digital Divide issues in New Zealand are driven by household income and location. The more rural you are, and the poorer you are, the less likely you are to have good access to the Internet.

7 - How will your party assist the poor in New Zealand to get decent access to computers and the Internet, and what will your party do to ensure every school, library and polytechnic has fibre access?

Labour is committed to providing access to computers and the internet to all New Zealanders. Labour has focused on community digital development and supporting a nationwide network of digital hubs.

The Aotearoa People’s Network provides free computers, internet access, training and support – this received an additional $2m this year.  Community Partnerships Fund (CPF) has also been given another $6m this year.  The CPF supports initiatives that improve people's capability and skills to use ICT and develop digital content. The CPF is about innovation and community participation, and it supports grassroots initiatives that realise community aspirations through ICT.

We will develop and implement a National Education Network. Provide all education participants with access to a range of educational digital services and resources in a safe, secure and integrated environment.  By 2012, every education organisation – from early childhood education centres to universities – will have access to high-speed, reliable broadband.

We have committed $50million per year for enabling all schools to have computers, teachers to have access to resources like laptops and ensuring every child in New Zealand has world class exposure to ICT in helping to close the digital divide.

The two core objectives of BIF are to enable high speed broadband to businesses and key public users (health organisations, tertiary institutions, schools and municipal entities) in urban centres; and extend the reach of broadband into underserved regions.

Up to $40 million of the funding allocated to support urban fibre projects via BIF will be kept available to support demand aggregation initiatives within the state sector.

8 - The rural sector is often called the engine room of our economy – how will you improve rural connectivity and access to high-speed broadband?

Labour has developed a comprehensive rural connection strategy. The new Rural Broadband Fund, along with Telecom’s commitments to rural users through the Operational Separation undertakings and the fundamental review of the TSO, all form essential components of the Labour’s rural broadband strategy.

The rural broadband fund will improve connections to our rural.  The eligibility and assessment criteria support projects that extend broadband coverage to communities that do not have a terrestrial-based broadband service.

The criteria are aimed at the deployment of broadband infrastructure such as backhaul and access links that will support high coverage of 1 Mbps service and significant 5 Mbps coverage, and 10 Mbps to 90% of New Zealand by 2012.  $75m over 5 years is ring fenced for rural BIF.

In addition, aggregating demand by core government users (hospitals, schools, libraries and local government users) will assist the rollout of high-speed broadband to provincial and regional communities.

Copyright

Copyright law lets people benefit economically from their creative work. It should balance the rights of individual users with those of the copyright holders but in recent times significant concerns have arisen that the balance has shifted towards copyright holders as society grapples with the implications of digital media.

9 - How far should Government go to protect the interests of copyright owners against the rights of citizens and do you think our copyright laws are being unduly influenced by the US entertainment industries?

Labour agrees that the rights of individual users should be balanced with those of copyright holders.  The success of ICT in New Zealand relies both on the quality of our content and connectability.

The Labour government, in amending the Copyright Act is to create a more technology neutral framework for copyright and to ensure that an appropriate balance between the interests of content producers (copyright owners) and users is maintained with the advent of new technologies.  The development of the Internet and digital technology provide new challenges in this regard.

Labour recognises that copyright legislation is heavily impacted by emerging technologies and converging business models and it is important that it is fit for purpose.  It is necessary to be open to the need for amendments where the case for change is strong and the benefits outweigh costs.

10 - As a result of industry pressure, the Government has delayed Section 92A of the amended Copyright Act, which will require ISPs to terminate the accounts of repeat copyright infringers. What is your position on s92A and how would you resolve the issues?

Hon Judith Tizard and Hon David Cunliffe have jointly committed to working with industry on solutions to develop the best possible balance between ICT users and creators.

Section 92A of the amended Copyright Act requires Internet Service Providers (ISPs) to have and reasonably implement a policy for the termination of the accounts of repeat copyright infringers.  Although the Act as a whole comes into effect on 31 October, implementation of section 92A has been delayed until 28 February 2009 to allow ISPs and rights holder groups time to reach agreement on how it can be effectively implemented.

To this end a working party has been established by the Telecommunications Carrier Forum (TCF) to develop an industry code of practice which is expected to become the industry standard.  The working party includes most of the larger New Zealand ISPs, rights holder groups, InternetNZ and the ISP Association of New Zealand (ISPANZ).

Consumer groups will also be consulted throughout the code’s development process.  The government will listen to any residual concerns expressed by the working party about the wording of Section 92A of the amended Act.

11 - Will you commit to a balanced approach to copyright reform that reflects the views of all New Zealanders by pledging: to respect the rights of creators and consumers; to not support law change that undermines or weakens copyright user rights; and to fully consult with New Zealanders before introducing law changes or signing international treaties that would impact copyright user rights?

Yes.  Balance is important and so is consultation with all interested parties.

12 - Should there be a first-principles review of New Zealand’s Copyright Law and, if so, when would you begin this work?

Labour recognizes that intellectual property is a central part of New Zealand’s future in ICT.  We are committed to strengthening and developing IPOs, we have already amended the Copyright Act to assist with this.

Copyright law is an evolving area in both the international arena and with changes in technology. Government and officials always keep a watching brief in this area and if a first principles review was called for them this is something we would consider on its merits.

Labour will ensure that the voices of the ICT sector are heard in any further discussions or reviews in this important area.

Cybersafety

Connection to the Internet exposes the public of all ages to inappropriate material, online predators, and net nasties such as viruses, worms, Trojans and malicious software.

13 - Last election there were pledges of 1,000 more cops on the street. What about online? How many more cops do we need in cyberspace? And will you increase the capability of the Police E-crime Lab, Internal Affairs Censorship and Anti-Spam Units, Customs, and the Centre for Critical Infrastructure Protection?

Labour is committed to ensuring New Zealanders of all ages are safe on the internet.  Safe from inappropriate material, online predators and viruses. We recognise that to beat the bad guys in this area we have to have appropriate laws and education.

The Labour Government has increased resources into all the areas mentioned above already. Subsequently there have been several successful prosecutions taken against e-crime lawbreakers.

The emphasis in New Zealand is on education.  Through organisations like Netsafe there is a comprehensive programme focused on educating parents and children about online safety.  We are increasing support for NetSafe to extend the promotion of its NetBasics website, small business toolkit, parent cybersafety training, and cyberbullying prevention programme.

The ISP Code of Practice is also preventative and the DIA's enforcement powers are a strong deterrent. We have been conducting a trial web filtering programme in association with a number of ISPs.  The trial currently blocks access to about 7,000 websites that are known to deal exclusively with child sexual abuse imagery.  The programme intends to contribute to the safety of the public’s online experience by preventing inadvertent access to this type of objectionable material.

Labour will also improve New Zealand’s cybersecurity threat prevention, detection and response capability for critical infrastructure, including resourcing the Centre for Critical Infrastructure Protection.    We are working with the banking sector to promote online security.

There is no point in having advanced connectivity without security and the confidence to enjoy it, Labour is committed to both security and confidence in ICT.

14 - Does NZ need to establish an NZCERT (Computer Emergency Response Team) and if yes, what role should Government play in the establishment, operation and funding of an NZCERT?

The Labour-led government is leading consultation on the establishment of an NZCERT in consultation with InternetNZ.

Labour would continue to do further work in this area to determine the scale of any CERT, its functions and costs.

The government is currently investigating the establishment of a NZ CERT and has been having discussions with InternetNZ about this.

Privacy

The UK Government is planning to spend £12 billion on a database to monitor and store all its citizens’ Internet browsing, emails and phone calls, in the face of huge concerns globally about privacy breaches surrounding Government and corporate data.

15 - What is your party’s view of the UK approach? Are you in favour of more, or less, intrusive actions by Government and enforcement agencies? What will your party do to ensure the privacy of each individual’s identity and information online?

We believe that the UK response is unusual. New Zealand agencies already have very strict privacy requirements as determined by the Privacy Act.  The Privacy Commissioner has a team and a number resources dedicated to online security.  Labour believes the important work of this team should continue.

The Privacy Commissioner is well regarded internationally and is responsible for administering the Act, including codes of practice and enforcement across government and private sector.  The Privacy Commissioner is working on the APEC pathfinder initiative to promote cross-border cooperation amongst privacy enforcement authorities.

IPv6

The Internet is currently reliant on IPv4 as the network layer IP addressing protocol. The entire IPv4 address space amounts to around 4 billion addresses available globally and exhaustion of this address space is likely to occur within the next two years.

Governments are increasingly concerned with the lethargy of conversion to IPv6, the next generation of IP addressing, and the USA and Australian Governments are showing determination to migrate, particularly in the area of their Defence Forces.

16 - What steps do you intend taking to accelerate the deployment of networks using IPv6 in New Zealand, particularly inside Government?

Labour believes that early transition is essential.  The work we have been doing with Internet NZ and other stakeholders will ensure this occurs.

The government is a large ICT investor and facilitator and officials from MED and SSC are already working with industry to raise awareness of IPv6 and encourage deployment.  Labour is committed to continuing this work.

Convergence

The Internet and traditional broadcast media are converging and the Government is reviewing broadcasting and content regulation. The boundaries are breaking down between digital and analogue worlds, across business models, delivery channels and access devices and fundamental differences between traditional broadcast and the Internet need to be addressed.

17 - How will your party address the issues of regulation of content in New Zealand as content becomes more and more available online and outside of traditionally regulated broadcasting channels?

Convergence is a fact not a philosophy.  We need to ensure we have the right mechanisms to deliver content.  Labour believes further work needs to be done in this area.

The regulatory review of digital broadcasting is looking at whether the current regulatory regime for broadcasting and related services needs changing given the increasing convergence between broadcasting, telecommunications and the Internet. Two key areas of further work as part of this review are:

1.    a review of the current institutional arrangements for the regulation of broadcasting and networks.

2.    a competition study to identify any issues around access to premium broadcasting like content, and access for broadcasters to deliver premium content across networks and platforms.

18 - Do we need a converged regulator of broadcasting and telecommunications, and if so, should there be two such converged regulators, one for content and the other for infrastructure?

Labour has set out two options to consider for a converged regulator of broadcasting and telecommunications.  A two regulator model and a single regulator model instead of three.

Cabinet is due to consider any recommendations of converged regulators in later next year 2009.

19 - How do you see the increasing delivery of media content over the Internet affecting the way content creation is funded by Government?

Labour recognises the importance of digital content to New Zealand.  There is no question that new technologies and developments in ICT are driving the way much of our content is delivered.  Our Digital Content Strategy seeks to recognise and leverage this trend to New Zealand’s advantage.

Content creation funding is moving away from being platform specific i.e. just for television. For example, the Broadcasting Act changes which were implemented last year mean that NZ On Air can fund digital content across multiple platform projects.

Digital Strategy 2.0 draws on New Zealand’s internationally recognised Digital Content Strategy, and builds on the challenges and actions presented in that document.

Labour knows that having a high-speed digital infrastructure makes no sense without innovative content and applications to fill it. Creating high-value content – for ourselves and for export – is an area where New Zealanders can lead the digital world.

The Digital Strategy 2.0 proposes a Digital Content Innovation Cluster. This will boost New Zealand’s production of applications in areas such as e-learning, e-health and online gaming, helping drive demand for widespread broadband connection. It will also enhance the productivity and competitiveness of important export industries, such as food and beverages and farming, by creating digital solutions tailored to their needs and to local conditions.