Crown Fibre Holdings Limited (CFH) has been established to manage the Government’s $1.5 billion investment in Ultra-Fast Broadband infrastructure. The Government’s objective is to accelerate the roll-out of Ultra-Fast Broadband to 75 percent of New Zealanders over ten years, concentrating in the first six years on priority broadband users such as businesses, schools and health services, plus green field developments and certain tranches of residential areas (the UFB Objective). The Government’s objective will be supported by investment in partnership with the private sector, and be directed to open-access infrastructure.
Crown Fibre Holdings (CFH) will:
- deliver on the UFB Objective as above;
- operate in a financially sustainable manner;
- begin investing without providing a commercial return to the Crown; and
- eventually provide a commercial return on the Crown’s investment, and operate as a successful business, when directed by its shareholding Ministers and the Minister for Communications and Information Technology.
Crown Fibre Holdings was formed as a Crown-owned company under the Companies Act 1993. It is of the type listed on the 4th schedule of the Public Finance Act 1989, where joint ownership is necessary or desirable as the Crown intends to reduce its shareholding at some stage to somewhere between over 50% and under 100%.
Crown Fibre Holdings contracted with four parties to deploy Ultra-Fast Broadband to 75% of New Zealanders. Three Local Fibre Companies or LFCs were created as a result and the fourth partnership resulted in a newly formed company called Chorus Limited, which separated from its former parent, Telecom New Zealand Limited. More about CFH’s UFB partners and the candidate areas they’ve been contracted to build can be found here.