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InternetNZ encouraged by ISP survey

Media Release – August 2, 2007 – InternetNZ (The Internet Society of New Zealand) is encouraged by some aspects of a Statistics New Zealand survey of Internet Service Providers but notes that significant improvements need to be made before New Zealand enjoys the benefits of real broadband.

Executive Director Keith Davidson says he is pleased at the
18.5 percent increase in broadband subscribers for the six month period to 31
March 2007, attributing the increase to recent price reductions and more attractive
broadband plans.

Davidson is also pleased that the predominant download speed
for broadband subscribers has increased but notes these don’t necessarily reflect
actual download speeds being experienced by end-users.

InternetNZ remains concerned at the restrictive datacaps and
slow upload speeds being imposed on New Zealanders.

“It is disappointing to see that 89.8 percent of all
broadband subscribers have a datacap and that 59.2 percent have a datacap of less
than 5GB per month,” says Davidson.

He says New
Zealand’s upload speeds are snail-pace, making
it difficult for subscribers to make full use of broadband applications including
gaming and videoconferencing. “Combined with the restrictive datacaps its
little wonder broadband uptake is very low by OECD standards,” he says.

The survey shows that ISPs believe the telecommunications
regulatory environment is now less of a barrier to ISP growth.

InternetNZ is also encouraged by the strong growth of cable
connections in the past twelve months. “The dominant form of connection, DSL, is
a legacy technology. We need to see more investment in fibre infrastructure,
including significant deployment of fibre-to-the-home if we are to achieve a
useful broadband uptake and intelligent use this technology can bring,” says

For more information contact:
Keith Davidson
Executive Director
021 377 587

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