Continued investment needed to connect rural New Zealand to its future

New Zealand is rural at heart. Our identity is based on the green spaces of our countryside, and our economic prosperity is built on the strength and success of our farmers. Exports, tourism, and even a significant part of our tech industry are all based on the rural economy. So ensuring its future success is vital to the success of our nation. That's why Tuanz has consistently called for increased investment in rural connectivity – because rural New Zealand’s future requires world-class connectivity. 

We know right now rural New Zealand is doing it tough, with exceptionally low milk payouts just one of several pressures. However, it is coming off a record peak, and if we can keep ahead of the innovation curve the future looks bright. As we heard at the recent Rural Connectivity Symposium, to achieve the government’s goal of doubling the value of our primary sector exports by 2025, we cannot grow as we have to date but instead have to use technology and connectivity to add value, increase productivity, and be more efficient. 

KPMG’s 2015 survey of the agribusiness industry showed connectivity was the second priority of agribusiness leaders, just behind biosecurity. New Zealand’s agricultural selling point is quality, and we can prove quality by creating connections between our producers on the farm and our consumers, from Shanghai to Rio de Janeiro. High-end consumers want to know about water quality, animal welfare, climate, and environmental impact. Connectivity gives them real-time information, creating a competitive advantage and a way to add value.  

From our partnerships with rural health organisations, we know that improving connectivity is also essential for providing equitable healthcare to rural communities. Rural medical practitioners will tell you that being able to connect saves lives through improved communications in times of accidents, in bringing specialist care closer to patients, and improving the mental health outcomes for socially isolated people. 

Connectivity is just as important for improving the liveability of rural communities. The workforce outside the urban centres is rapidly aging – the average age of a farmer is now 56, up from 53 only eight years ago. Attracting and retaining young people in the regions is critical to having a workforce that can keep our farms productive while also bringing in new and innovative ways to do business.  

In essence, Tuanz’s message has stayed the same for more than 10 years. Rural New Zealand deserves affordable and reliable mobile and internet coverage. We all rely on the internet for business, healthcare and to stay connected to family and friends. Looking at how our rural cousins use connectivity confirms that rural businesses and communities have the same wants and needs as urban users. If anything, this reliance is even higher in rural areas, and we need to aim higher to meet these needs.  

That's why, following the symposium, we reiterated our call for the telecommunications industry and government to work together to continue to increase investment in rural connectivity. The government also needs to be more ambitious about their rural connectivity targets and to collaborate with industry to address rural connectivity issues, especially mobile data coverage. 

We recognise that things have improved with the investments made through the Rural Broadband Initiative. We’ve seen improved broadband and mobile coverage, from 38% to 50% of the country by area; increased mobile coverage on state highways, from 67% to 77%; fibre in 97% of rural schools, and in 39 rural hospitals. But what was ambitious at the start is no longer enough, and we need to aim higher again. 

We believe that by being ambitious and working together, government and the telecommunications industry can deliver the connectivity that rural New Zealand needs. We believe competitive mobile services should cover 100% of our state highways by 2019, and that all of our rural health facilities should be connected to fibre-like-speeds in the same timeframe. We also believe the government should be more ambitious than their target of connecting 99% of the country at 50Mbs by 2025. 

There is no reason we can’t achieve that by 2020, especially when the technology already exists, whether it is through fibre, mobile networks, or local fixed wireless providers. So let’s look at innovative ways to allocate money in RBI2, to utilise all of the available resources to bring forward the target. And then let's keep heading towards the ultimate goal, of the same speeds and quality across the country, no matter where you live, work or play.

Craig Young is the chief executive of the Telecommunications Users' Association (Tuanz).

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