The new generation fibre optic based network would enable secure, high end computing capable of moving large amounts of information between databases for climate modeling for example, or creating video walls or 3D images which could to be manipulated between cities or even across the world.

This will be the next step up from the existing university and Crown Research Institute Kawahikau network, which in its formative days was responsible for bringing the Internet to New Zealand.

Neil James, chairman of Next Generation Internet New Zealand (NGI) says for financial reasons a full national network may not be possible initially but some parts are expected to be live this year. "The technical side is not difficult, it’s more the business and political relationships – once these are sorted things could happen in a matter of weeks."

Discussions with various suppliers and potential partners have narrowed to two players. Telecommunications Review understands Telecom and CityLink are on the shortlist and a decision is imminent. It’s thought the Tranz Rail owned fibre optic cable between Wellington and Palmerston North could provide an important building block.

IP6 protocol to be used

The fundamental design will be based around GigaPops in the main centres including Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin.. The neutral open connection points of presence, based on the leading edge IP6 protocol, will be capable of gigabytes of throughput per second.

Funding however remains an obstacle. While the government has shown strong interest in the network it has also made it clear most of the funding must come from private initiatives.

NGI’s dissatisfaction with the current telecomms model for bandwidth charging may also raise issues. "We know the real costs of providing the sort of networks we’re talking about is a lot lower than you would pay for equivalent connectivity with the current business model," says Mr James.

Under the current model the pricing is not based on the cost of provision. If you are running at 1Gbit/sec and suddenly require 2Gbit/sec that’s likely to double the cost but with the new model, once you’ve got fibre available, extra bandwidth should be available at a small marginal cost, says Mr James.

Virtually every other OECD national has advanced networks. Higher learning institutions in the US (190 universities plus business and government), UK, Canada and Australia are already logged on to the leading edge, high bandwidth Internet 2 network.

"If we don’t exploit the capabilities of this technology we will be left out in the cold as far as international research is concerned. More and more research is done in collaboration and advanced networking is required."

Mr James says NGI is offering the telcos an opportunity to change their business model in an organised manner. "If this change doesn’t happen soon it will happen suddenly as others come in and realize the opportunity."

The ‘super-adequate’ network would usually be idle rather than full. "On average we expect to run at 5-10 per cent capacity providing a very responsive service which is how these networks operate in international terms," he says.

"In the first instance we would focus on the research and education communities but quickly include innovative industries that require advanced networking capabilities."

In parallel the Ministry of Research Science and Technology (Morst) has taken a strong interest in advanced networking with its own advisory group reviewing the nation’s scientific networks and the applications and services that might run over next generation infrastructure.

Mr James is unable to say what the overall cost is, stating that users in each area will have to contribute and determine how they will connect to the GigaPops. The conditions of the partnership with the successful network provider will also determine that cost. " We are hoping for degree of goodwill not a free hand out."