During the recent Australian election, Labour leader Kevin Rudd promised major government money to boost broadband by laying more fibre-optic cable around cities and suburbs (some $A5 billion worth). The encumbent John Howard promised a relatively more modest $A2 billion path to faster internet, based around tweaking major cities' existing DSL networks.

John Key's announcement today that a National-led government would spend "up to" $1.5 billion on fibre optic cable to the home, in an as yet undefined public-private partnership, reminds me strongly of Rudd's broadband play. Key says the total project, including around $3 billion in private funding, would take six to 10 years.

Encumbent IT Minister David Cunliffe has done a lot, from the historic unbundling of the local loop to pending operational separation of Telecom to recently nudging the state-owned Kordia to build a second fibre optic cable to Australia in partnership with Pipe (lousy internal broadband aside, the Telecom-owned Southern Cross Cable - our only major link to the outside world - is NZ's major fast-internet choke-point). Broadband has got cheaper, but for many homes the benefits of unbundling and other policies won't trickle down until after the election. Key is correct to identify slow internet as a major BBQ conversation topic and election issue.

Cunliffe's office was quick to snap out a response. Working on the assumption that only Telecom would be large enough to be the private partner in such a public-private partnership, Cunliffe's release says Key would be spending tax-payers money to help Telecom restore the billing and infrastructure monopoloy it enjoyed during the 90s (albeit this time with true broadband rather than narrow band).

Cunliffe doesn't say so in his press release, but I would have pointed out that the government spending money on WiMax (via Kordia) sets up a strong wireless competitor to Telecom's landline copper + fibre business.

Incidentally, Cunliffe has also challenged Key to a broadband debate. Maybe Second Life could be the venue ...