The government has sought private funds for its ambitious $1.5 billion Broadband Investment Initiative. A new company namely Crown Fibre Holdings, under the new Crown, is expected to come up for executing the public-private partnership deal, in a bid to provide high speed broadband connectivity to New Zealand citizens in the coming 10 years.

Communications Minister Steven Joyce said that government will retain its stakes in infrastructure project developed with the help of private partnership. Mr. Joyce added: "It is important that the Crown and taxpayers see very clearly what their investment is in the project. And that's why we've gone with the investment model."

The minister hoped that government will soon achieve its targets of rolling out fiber in 33 cities and towns, with the help of local fiber companies. Broadband connectivity would be provided to schools, hospitals, health service providers and homes in new sub-divisions of Masterton, Levin and Kapiti for the first six years of plan.

Joyce hoped that the proposed company, Crown Fiber Holdings, will become operational soon, completing negotiations with private players by mid 2010.