Regional digital stocktake and state of play - June 2018 - Cultivate IT

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Regional digital stocktake and state of play - June 2018 - Cultivate IT
Regional digital
        stocktake and state
              of play

                     June 2018

Wollemi Consulting
Regional digital stocktake and state of play - June 2018 - Cultivate IT
Context and Objectives

       Wollemi Consulting was engaged in January 2018 by Waikato Means Business in partnership with
       CultivateIT and UltraFast Fibre to provide an evidence base for developing a programme of work to
       increase the uptake of digital technologies in the region.

       This “Regional Digital Stocktake & State of Play” describes the Waikato region’s current digital
       assets, projects and challenges, and includes -

       •   A summary of the various activities and functions in the current ICT landscape across the region,

       •   the likely drivers of further development of the digital economy in the Waikato region, and

       •   how the Waikato region compares with peer regions within New Zealand and internationally.

       The report was tabled for review by the CultivateIT board in April 2018.

       Following on from this a Digital Action Plan was developed, and the two pieces of work were then
       referred to in developing the Digital Waikato 2025 in collaboration between CultivateIT, Te Waka
       and a Digital Stakeholder Group.

       This document is licensed under a Creative Commons Attribution 4.0 International License.

       You are free to re-use the work under that license, on the condition that you attribute Wollemi
       Consulting Limited as author, indicate if changes were made, and comply with the other license
       terms.

       License URL: https://creativecommons.org/licenses/by/4.0/

Wollemi Consulting
Regional digital stocktake and state of play - June 2018 - Cultivate IT
Executive Summary

           •    Internet access in Waikato is at similar levels to the rest of NZ, with urban areas leading and
                poorer, more rural districts lagging.

           •    Mobile phone use across Waikato is near the national average but Waitomo district is well
                behind.

           •    Due to areas of low population density, Waikato has a lower level of fibre (UFB) availability
                than comparable regions and the national average.

           •    However, where UFB is available uptake is generally above the national average.

           •    As in NZ more broadly, a “digital divide” is evident, and is strongly correlated with household
                income.

           •    Waikato has a strong tech sector which is punching above its weight in exports and growing
                strongly.

           •    Catching up to the larger regions such as Auckland and Wellington in terms of tech sector
                GDP and employment would be hugely positive for the region.

           •    Local governments across the region have a wide variety of plans in place to build
                community ICT awareness and, specifically, business uptake.

           •    Key sectors for growth include dairy/ agriculture, tourism, manufacturing and the Maori
                economy.

Wollemi Consulting
Regional digital stocktake and state of play - June 2018 - Cultivate IT
Table of Contents
       Context and Objectives ........................................................................................................................... 2
       Executive Summary................................................................................................................................. 3
       Internet access ........................................................................................................................................ 6
          Forms of connectivity available, projection as at end 2022 ............................................................... 6
          Internet connections........................................................................................................................... 7
              By District ........................................................................................................................................ 8
          Household income and Internet access .............................................................................................. 9
       Mobile phone usage ............................................................................................................................. 10
              By Region ...................................................................................................................................... 10
              By District ...................................................................................................................................... 11
       UFB deployment ................................................................................................................................... 12
          Waikato UFB deployment by year including % of population covered ............................................ 12
          2023 population outside UFB coverage across New Zealand ........................................................... 13
          RBI2 & Mobile Blackspot Fund .......................................................................................................... 15
          RBI2 Coverage areas ......................................................................................................................... 16
       Digital Divide ......................................................................................................................................... 17
          Social well-being ............................................................................................................................... 17
          Digital inclusion ................................................................................................................................. 18
       Tech Sector............................................................................................................................................ 19
          Contribution to GDP.......................................................................................................................... 20
          Employment ...................................................................................................................................... 20
              Tech sector share of employment 2015 ....................................................................................... 20
              Share of national Tech Sector jobs, 2017 ..................................................................................... 21
              Employment Forecast ................................................................................................................... 21
              Projected growth in employment 2017-2020............................................................................... 21
          Exports .............................................................................................................................................. 22
              Share of ICT Exports, 2015 ............................................................................................................ 22
              TIN200 Revenue mix and 5-year growth (2017) ........................................................................... 22
          Skills & workforce ............................................................................................................................. 23
       Future of Work ...................................................................................................................................... 23
       Key organisations supporting the tech sector in Waikato .................................................................... 25
       Data centres & resilience ...................................................................................................................... 26
          Existing data centres in Waikato ....................................................................................................... 26
       Fibre companies .................................................................................................................................... 26
          Telco Retail Service Providers (RSPs) ................................................................................................ 27

Wollemi Consulting
Regional digital stocktake and state of play - June 2018 - Cultivate IT
WISPs (Wireless ISPs) ........................................................................................................................ 27
       Electricity lines companies .................................................................................................................... 28
       Post-2019 telco regulatory model ........................................................................................................ 28
          Population coverage by fixed access, 2022 (By Provider) ................................................................ 28
       Local government initiatives ................................................................................................................. 29
       Summary by key sectors ....................................................................................................................... 32
          Maori Economy ................................................................................................................................. 32
              Connectivity to marae ................................................................................................................... 32
          Dairy, sheep/ beef & agriculture....................................................................................................... 33
          Tourism ............................................................................................................................................. 33
          Manufacturing .................................................................................................................................. 33
          Health ................................................................................................................................................ 34
          Education .......................................................................................................................................... 34
          Non-Government Organisations ....................................................................................................... 34
              SeniorNet ...................................................................................................................................... 34
              Web Access Waikato Trust............................................................................................................ 34
              OMGtech!...................................................................................................................................... 35

Wollemi Consulting
Regional digital stocktake and state of play - June 2018 - Cultivate IT
Internet access
       Forms of connectivity available, projection as at end 2022

                                              NZ                                                             Waikato region
                                          RBI2     RBI gap                                                    RBI2               RBI gap
                          RBI1/4G                                                                                                  1%
                                          3%         1%                                                       4%
                           10%
                                                                                               RBI1/4G
                                                                                                18%

                                                            UFB                                                                          UFB
                                                            86%                                                                          77%
                            UFB          RBI1/4G     RBI2     RBI gap
                                                                                                       UFB      RBI1/4G       RBI2      RBI gap
       Waikato is expected to have less fibre deployment per capita, and more dependence on wireless & copper connectivity than the NZ average

       Note: RBI1/2 may include high speed copper broadband (VDSL)

       Source: CIP, Wollemi estimates.

Wollemi Consulting
Regional digital stocktake and state of play - June 2018 - Cultivate IT
Internet connections
                                            2013 Access to the Internet
       Waikato had below NZ average levels of Internet connections in 2013 and there is a wide spread within the region

       By85%
         Region

         80%

         75%

         70%

         65%

         60%

         55%

         50%

                 Waikato Districts        Waikato Region           NZ          Other Districts/ Regions

       Source: 2013 NZ Census

Wollemi Consulting
Regional digital stocktake and state of play - June 2018 - Cultivate IT
50%
                                                                                                       55%
                                                                                                             60%
                                                                                                                   65%
                                                                                                                         70%
                                                                                                                               75%
                                                                                                                                     80%
                                                                                                                                           85%

Wollemi Consulting
                                                                                                                                                 By District

                                                                                   Franklin LB
                                                                                Hamilton City
                                                                                Tauranga City

                     Source: 2013 NZ Census.
                                               Waikato Districts
                                                                                  NZ average
                                                                                       Waipa
                                                                                 Western BoP
                                                                              New Plymouth
                                                                              Waikato District

                                                Waikato Region
                                                                                 Papakura LB
                                                                              Waikato Region

                                               NZ
                                                                                       Taupo
                                                                                     Rotorua
                                                                             Matamata-Piako
                                                                          Thames-Coromandel
                                                                                 Otorohanga
                                                                                  Whakatane
                                                                              South Taranaki
                                                                                                                                                          2013 Access to the Internet

                                               Other Districts/ Regions

                                                                                    Stratford
                                                                                      Hauraki
                                                                              South Waikato
                                                                                    Waitomo
                                                                                    Ruapehu
                                                                                    Kawerau
                                                                                      Opotiki
Regional digital stocktake and state of play - June 2018 - Cultivate IT
Household income and Internet access
       Strong correlation between household income and % internet access across Waikato

       Source: 2013 NZ Census.

       Note – R-squared = .62

Wollemi Consulting
Mobile phone usage
       Waikato mobile connections were at the NZ average in 2013 and Waikato districts were closely clustered around average except Waitomo

       By Region
                                       2013 Access to a Mobile Phone
         90%
         85%
         80%
         75%
         70%
         65%
         60%
         55%
         50%

                 Waikato Districts       Waikato Region           NZ         Other Districts/ Regions
       Source: 2013 NZ Census.

Wollemi Consulting
50%
                                                                                                       55%
                                                                                                                               75%
                                                                                                                                     80%
                                                                                                                                           85%
                                                                                                                                                 90%

                                                                                                             60%
                                                                                                                   65%
                                                                                                                         70%

Wollemi Consulting
                                                                                                                                                       By District

                                                                                   Franklin LB
                                                                                       Taupo

                     Source: 2013 NZ Census.
                                                                                 Western BoP

                                               Waikato Districts
                                                                                Tauranga City
                                                                                       Waipa
                                                                                Hamilton City
                                                                              Waikato District
                                                                                  NZ average

                                               Waikato Region
                                                                              Waikato Region
                                                                             Matamata-Piako

                                               NZ
                                                                                 Papakura LB
                                                                              New Plymouth
                                                                                     Rotorua
                                                                              South Taranaki
                                                                              South Waikato
                                                                                 Otorohanga
                                                                                      Hauraki
                                               Other Districts/ Regions

                                                                          Thames-Coromandel
                                                                                                                                                            2013 Access to a Mobile Phone

                                                                                  Whakatane
                                                                                    Kawerau
                                                                                    Stratford
                                                                                    Ruapehu
                                                                                    Waitomo
                                                                                      Opotiki
UFB deployment
       Waikato UFB deployment by year including % of population covered
                                          Waikato UFB deployment by year                77%
        150000
                                                                                 64%
                                                           56%            60%
        120000

                             44%                  47%
          90000

          60000

          30000

                 0
                      Completed by                2018    2019            2020   2021   2022
                         2017

                                                            UFF     Chorus
       Note: Calendar years. Sources: CIP, UFF.

Wollemi Consulting
Premises     Deployment   Forecast completion
       City / town / area             Partner                                                   District Council
                                                covered        phase             date*
       Hamilton                       UFF             57,243      1           Completed         Hamilton City
       Taupo                          Chorus           9,968      1           Completed         Taupo
       Cambridge                      UFF              7,763      1           Completed         Waipa
       Te Awamutu                     UFF              5,486      1           Completed         Waipa
       Tokoroa                        UFF              4,953      1           Completed         South Waikato
       Waihi & Waihi Beach            Chorus           4,908      2             May-19          Hauraki
       Whangamata                     Chorus           4,172      2            by 2022#         Thames-Coromandel DC
       Tairua                         Chorus           3,783      2            by 2022#         Thames-Coromandel DC
       Whitianga                      Chorus           3,129      2              2022*          Thames-Coromandel DC
       Thames                         Chorus           3,112      2              2018*          Thames-Coromandel DC
       Matamata                       Chorus           3,097      2              2020*          Matamata-Piako
       Morrinsville                   Chorus           2,981      2              2021*          Matamata-Piako
       Huntly                         UFF              2,852      2              Jul-19         Waikato DC
       Tamahere/Matangi/Tauwhare Pa   UFF              2,156     2+             May-19          Waikato DC
       Turangi                        Chorus           2,080      2            by 2022#         Taupo
       Paeroa                         Chorus           1,921      2             Apr-20          Hauraki
       Te Aroha                       Chorus           1,901      2              2021*          Matamata-Piako
       Ngaruawahia                    UFF              1,877      2             Aug-18          Waikato DC
       Te Kuiti                       Chorus           1,792      2              2021*          Waitomo
       Putaruru                       UFF              1,787      2             Dec-19          South Waikato
       Raglan                         UFF              1,618      2             Dec-19          Waikato DC
       Tuakau                         Chorus           1,574      2              2021*          Waikato DC
       Matarangi                      Chorus           1,455     2+            by 2022^         Thames-Coromandel DC
       Otorohanga                     Chorus           1,264      2              2022*          Otorohanga
       Kuratau/Pukawa                 Chorus           1,186     2+            by 2022^         Taupo
       Ferry Landing/Cooks Beach      Chorus           1,072     2+            by 2022^         Thames-Coromandel DC
       Kinloch                        Chorus             967     2+            by 2022^         Taupo
       Kihikihi                       UFF                951      2             Dec-19          Waipa
       Coromandel                     Chorus             791      2              2020*          Thames-Coromandel DC
       Chorus UFB2 Fringe             Chorus             765     2+            by 2022^         ????
       Mangakino                      Chorus             757     2+            by 2022^         Taupo
       Hahei                          Chorus             588     2+            by 2022^         Thames-Coromandel DC
       Te Kauwhata                    Chorus             554      2              2019*          Waikato DC
       Ngatea                         Chorus             549      2             Oct-19          Hauraki
       Port Waikato                   Chorus             479     2+            by 2022^         Waikato DC
       Tirau                          UFF                447     2+             Dec-19          South Waikato
       Pirongia                       Chorus             421      2              2020*          Waipa
       Acacia Bay                     Chorus             388     2+            by 2022^         Taupo
       Whangapoua                     Chorus             386     2+            by 2022^         Thames-Coromandel DC
       Mamaku                         Chorus             363     2+            by 2022^         Rotorua
       Whatawhata                     Chorus             336      2              2018*          Waikato DC
       Parkdale                       UFF                318     2+             Dec-19          South Waikato
       Rukuhia                        Chorus             281      2              2019*          Waipa
       Waharoa                        Chorus             273     2+            by 2022^         Matamata-Piako
       Te Puru                        Chorus             269      2              2019*          Thames-Coromandel DC
       Temple View                    UFF                237     2+             Dec-19          Waipa
       Meremere                       Chorus             233     2+            by 2022^         Waikato DC
       Te Kowhai                      UFF                210     2+             Dec-19          Waikato DC
       Turua                          Chorus             202     2+             May-20          Hauraki
       Waiomu                         Chorus             200     2+            by 2022^         Thames-Coromandel DC
       Piopio                         Chorus             196      2            by 2022#         Waitomo
       Waihou                         Chorus             192     2+            by 2022^         Matamata-Piako
       Horotiu                        Chorus             192      2              2018*          Waikato DC
       Mokau                          Chorus             185     2+            by 2022^         Waitomo
       Ohaupo                         Chorus             182      2              2019*          Waipa
       Pokeno                         Chorus             174     2+            by 2022^         Waikato DC
       Taupiri                        Chorus             168      2              2019*          Waikato DC
       Benneydale                     Chorus             163     2+            by 2022^         Waitomo
       Wairakei Village/Wairakei      Chorus             160     2+            by 2022^         Taupo
       Kuaotunu                       Chorus             132     2+            by 2022^         Thames-Coromandel DC
       Karapiro                       Chorus             121     2+            by 2022^         Waipa
       Matatoki                       Chorus             120     2+            by 2022^         Thames-Coromandel DC
       Waitoa                         Chorus             119     2+            by 2022^         Matamata-Piako
       Tapu                           Chorus             114     2+            by 2022^         Thames-Coromandel DC
       Rotokauri                      UFF                112     2+             Dec-19          Waikato DC
       Tauwhare                       UFF                107     2+             May-19          Waikato DC
       Cambridge North                UFF                104     2+             Dec-19          Waipa
       Hautapu                        UFF                102     2+             Dec-19          Waipa
       Taupo Fringe                   Chorus             101      2            by 2022#         Taupo
       Kihikihi Fringe                UFF                 81     2+             Dec-19          Waipa
       Taupo Airport                  Chorus               1      2            by 2022#         Taupo

Wollemi Consulting
2023 population outside UFB coverage across New Zealand
       Waikato projected to have the highest population outside UFB coverage. Almost 1 in 4 households not scheduled to have access to fibre by 2022.

                                               2023 population outside UFB coverage
        50%                                                                                                                                 120000
                     23%                 42%
        40%                                                                                                                                 100000
                                                                                                            35%
                                                                                                                                            80000
        30%                                                                          25%
                                                       22%                    23%                                   23% 22%
                                                                                                    21%                                     60000
        20%                17%                   17%          16% 17%
                                                                                                                            14%             40000
                                                                                              5%
        10%                                                                                                                                 20000
                                    5%

         0%                                                                                                                                 0

                 Waikato Region            Pop'n notOther
                                          NZ        covered   by UFB (#)
                                                          regions                         Pop'n not covered by UFB (%)
                                                                                    % of population

       Source: Crown Infrastructure Partners

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RBI2 & Mobile Blackspot Fund

                                             New MBSF
                                             coverage (State
                                             Highways)

                                              New MBSF
                                              coverage          Blue
                                              (tourism)

                                              UFB2+

                                        10 tourism locations, 50km of State
                                        Highways to be covered under the
                                        Mobile Blackspot Fund.
       •   Crown Infrastructure Partners estimates:
                •    RBI2 will offer 9,281 additional end users in Waikato good
                     broadband via fixed wireless.
                •    Around 2,000 Waikato end users (~1%) will be unable to
                     achieve speeds of 20 Mbps.
       •   Only 5% of new State Highway coverage and 9% of new tourist
           locations to be covered are in Waikato.
       •   Deployment plans from the RCG released in late May 2018 (see
           next page), with build period shortened to end 2021.
       •   Some challenges with coverage maps e.g. BroadbandMap.nz does
           not cover all WISPs.

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RBI2 Coverage areas
       While welcome, new coverage areas under RBI2 appear modest

       Additional coverage areas include parts of Coromandel.

       Source: National Broadband Map: www.broadbandmap.nz

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Digital Divide
       Social well-being
                                                Waikato mostly classified as “Medium” for social
                                                well-being. Uses the NZ Index of Socioeconomic
                                                Deprivation (Dept of Public Health), University of Otago.

                                                The index takes into account:

                                                •   People
Digital inclusion

                                                Waikato is mostly classified as “High” for Digital Inclusion.

                                                This index combines:

                                                • Infrastructure - % who can receive broadband (2013)

                                                • Access – have access to the internet in the household (2013)

                                                • Skills – OECD PIACC (2013)

                                                This index is a “blunt instrument” as a score of just 21% is sufficient to earn a
                                                “Medium” rating, and needs further analysis.

       Source: DigitalDivide.NZ (InternetNZ).

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Tech Sector

           •    Waikato has a strong tech sector* which is typically 4th amongst NZ regions, behind
                Auckland, Wellington and Christchurch.

           •    Tech is ~6% of regional GDP but only 4% of employment. Waikato lags the larger regions on
                both measures. → Catching up would add to the regional economy and local employment.

           •    However, Waikato generates more than its fair share of tech exports. Local companies
                appear to have a stronger propensity to export, and this would reward further investigation.

           •    Revenues in the “TIN200” group of ICT companies are growing faster in Waikato than other
                NZ regions.

       Note: * Some of the data in the following pages, where marked, refers to the “Tech Sector”, which is
       the MBIE/ StatsNZ industry category representing the total of the ICT Sector and the High Tech
       Manufacturing sector.

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Contribution to GDP
       •   Waikato’s Tech Sector makes up 6% of regional GDP, below the NZ average of 8%.
       •   If Waikato could match the national average, this would add ~$350m to the region’s GDP.

                            Tech
       Tech sector GDP as % of        sector
                               total GDP, 2015 GDP as         % of total GDP
                  Gisborne
                 Southland                                                  Total NZ
                West Coast
              Marlborough                                                   Waikato
                 Northland
                                                                            Other Regions
                     Otago
               Hawke's Bay
            Nelson, Tasman
       Manawatu-Whanganui
                   Taranaki
              Bay of Plenty                                    4.7%
                   Waikato                                             5.9%
              New Zealand                                                              8.0%
                Canterbury                                                                    9.1%
                Wellington                                                                       9.8%
                  Auckland                                                                                    11.6%
                               0.0%       2.0%         4.0%          6.0%       8.0%          10.0%      12.0%

       Employment
                            Tech sector GDP as % of total GDP
       Tech sector share of employment 2015
                  Gisborne
                 Southland                                                  Total NZ
                West Coast
              Marlborough                                                   Waikato
                 Northland
                                                                            Other Regions
                     Otago
               Hawke's Bay
            Nelson, Tasman
       Manawatu-Whanganui
                   Taranaki
              Bay of Plenty                                   4.7%
                   Waikato                                           5.9%
              New Zealand                                                        8.0%
                Canterbury                                                               9.1%
                Wellington                                                                  9.8%
                  Auckland                                                                              11.6%
                              0.0%       2.0%         4.0%      6.0%         8.0%        10.0%        12.0%

       Sources: NZIER, MBIE, StatsNZ via Figure.NZ.

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Share of national Tech Sector jobs, 2017
       Just over 6% of all NZ Tech Sector jobs are in Waikato (whereas the region has 8.6% of all jobs),
       suggesting Waikato hasShare
                                scope toof  Tech
                                         grow       Sector jobs, 2017
                                               ICT employment.

                                     15.2%

                              3.9%
                                                                        39.6%
                            6.1%

                            10.8%

                                              24.4%
            Auckland     Wellington       Canterbury       Waikato      Bay of Plenty       Other

       Employment Forecast
       •   MBIE projects Waikato will have slightly above average growth in employment both in the tech
           sector and throughout the economy in the period 2017-2020.
       •   Such growth would not be sufficient for the Waikato tech sector to catch up with eg Auckland.

                              Employment
       Projected growth in employment        growth: 2017-20 forecast
                                      2017-2020
                  West Coast
                    Gisborne
                        Otago
                   Southland
                 Hawke's Bay
                      Tasman
                       Nelson
                   Northland
        Manawatu & Wanganui
                Bay of Plenty
                Marlborough
                     Taranaki
                     Waikato
                 New Zealand
                  Canterbury
                   Wellington
                    Auckland

                              0.0%           1.0%         2.0%         3.0%          4.0%           5.0%   6.0%
                                                NZ          Waikato       Other Regions
                                        Tech Sector Employment        Total Employment
       Tech Sector Employment
       Total Employment

       Sources: MBIE via Figure.NZ

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Exports
       Waikato punches above its weight in ICT exports, with 7.7% of exports compared with 6% of persons
       employed in the Tech Sector.
                                     Share of ICT Exports, 2015
       Share of ICT Exports, 2015

                                       15.3%

                                4.6%

                                                                            44.9%
                              7.7%

                               10.9%

                                                 16.7%
            Auckland        Canterbury          Wellington   Waikato        Bay of Plenty       Other

       Sources: NZIER/ Stats NZ via Figure.NZ

       TIN200 Revenue mix and 5-year growth (2017)
       Hamilton* and Central* have lower 5 year growth than other regions. Revenue mix is more High
       Tech Manufacturing rather than ICT.

       * TIN100 classifies South Waikato in “Central”

       Source: Tin100.com

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However, Hamilton* had the highest 2017 revenue growth of any region (22%)

       * TIN100 classifies South Waikato in “Central”

       Source: Tin100.com

       Skills & workforce
       •   Nationwide, in 2016 the Tech Sector:

                o    Employed 120,000+ people and added 14,000 jobs in the year.

                o    But only 5,090 new ICT graduates, and 5,500 foreign workers on technology-related visa
                     ➔ likely to be a shortfall.

                o    >14,000 students studying ICT at tertiary level, increasing 3% p.a.

                o    Popular roles: Machine learning, software development, data analysis and architecture.

                o    Any skills shortage does not appear to be uniform.

                o    Job switching higher than other professions.

                o    Employers tend to under-invest in training & development.

                o    Only ~30% of professionals being female.

                o    Maori and Pasifika also under-represented.

       •   A Waikato view of these statistics has been sought and will be added if available.

       Future of Work
       •   Attributes of the Waikato economy:

                o    Many jobs are exposed to technology disruption (one national estimate: 55%);

                o    Much of the workforce is in low value roles; and

                o    Some groups are not fully included in some sectors (e.g. Maori in the ICT sector)

       •   The Government’s Future of Work Commission describes its desire to drive a shift:

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o    From low value to high value work, for example through improved support for R&D;

                o    From a focus on full-time jobs towards a more flexible and fluid workforce;

                o    To respond to and harness technology advances such as cloud computing, big data,
                     sensor networks, automation etc.;

                o    To improve the resilience of the NZ economy through diversification & upskilling;

                o    With a “just transition” from current to future modes of operation

       •   The Government has described a future economy which is more Inclusive, Resilient, and
           Adaptable.

       •   This dovetails well with Waikato stakeholders’ views on their desired future state for the region.

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Key organisations supporting the tech sector in Waikato
       •   Waikato hosts support organisations at each level of the value chain
       •   The region has 4 co-working facilities (3 in Hamilton, 1 in Taupo)
       •   While the region appears to lack dedicated venture capital firms, market for VC investment appears national (Auckland-led) rather than regional, and
           local start-ups have been able to access VC
       •   Enterprise Angels investment network operates in Waikato but is based in Tauranga

       Source: TIN/ MBIE “Investors’ Guide to the Technology Sector”, 2017.

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Data centres & resilience
       •     Waikato is a natural home for future data centre/ cloud computing infrastructure due to its
             geological stability and central location
       •     Waikato can also provide a stable, secure location for failover facilities such as contact centre
             overflow
       •     New Zealand’s vulnerability to natural disasters of various kinds may work to Waikato’s
             advantage!

       Existing data centres in Waikato

           Datacentre               Location
           Kapua/Datacom            Hamilton
           Data Vault               Hamilton
           WaikatoOne               Waikato Innovation Park
           Spark Digital            Hamilton

       Fibre companies
       •     Waikato is covered by 2 Ultra Fast Broadband companies: UFF and Chorus.
       •     Handovers from both UFF and Chorus’s local fibre access networks to major providers such as
             Spark and Vodafone are already in place at Hamilton.

       Towns covered by UFB2/2+ will have world-class connectivity within a few years.

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Telco Retail Service Providers (RSPs)
       •   Parts of Waikato with fibre or copper access have plenty of choices of Retail Service Provider.
       •   In practice UFB areas have higher competition as fibre deployment is a churn event for
           providers.
       •   Communities outside fixed network coverage have fewer choices.

       Source: UFF, Chorus, BroadbandCompare.co.nz

       WISPs (Wireless ISPs)
       •   A variety of WISPs provide service in rural parts of Waikato, with Lightwire by far the largest.
       •   WISPs can offer broadband to households outside fixed line coverage.
       •   Only AoNet has secured RBI2 funding for a small deployment in King Country.
       •   4 of the 7 Waikato WISPs are not on BroadbandMap.nz, making coverage difficult to interrogate

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Electricity lines companies
       •     Waikato is covered by 6 different electricity lines companies.
       •     Two of these firms (WEL and Waipa) co-own UFF.
       •     Another (Unison) owns its own Fibre to the Home network available in parts of Taupo.
       •     Any “Fibre to the Farm” efforts could utilise rights of access over electricity lines.
       •     But diverse lines companies pose a challenge.

       Source: Electricity Networks Association: http://ena.org.nz/lines-company-map/

       Post-2019 telco regulatory model
       Post-2019 regulation of telecommunications in Waikato will look quite different from the rest of NZ

       Population coverage by fixed access, 2022 (By Provider)

                              New Zealand                                          Waikato
               NZ pop'n coverage by fixed line access, 2022 Waikato pop'n coverage by fixed access, 2022
                                                                               1%
                           12% 1%                                           22%
                                                                                                 34%

                      24%

                                                63%
                                                                                  43%
                                                             Chorus fibre     LFC fibre   Chorus copper   Other
              Chorus fibre   LFC fibre   Chorus copper   Other
           Access            Provider         Regulated
           Fibre             Chorus           Price regulated. Legacy copper not regulated.
           Fibre             LFC’s            Not price regulated. Legacy copper not regulated.
           Copper            Chorus           Price regulated.
           N/A               None             Not regulated

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Local government initiatives

        District           Summary
        Hamilton City      •   In late 2015 submitted a Digital Enablement plan which updated the earlier 2009 Digital Hamilton Strategy. Key initiatives
                               were to:
                                    o Promote business uptake;
                                    o Support regional initiatives and collaboration;
                                    o Support awareness-raising initiatives, including health and education; and
                                    o Review Council’s own ICT services.
                           •   Cloud-based ICT infrastructure in place.
                           •   Now well-advanced with its own Smart Cities programme
                           •   Key institutions University of Waikato & Wintec have major roles to play in helping the city reach its potential as a regional
                               ICT powerhouse.

        Waikato District   •   This diverse and growing district includes areas experiencing rapid population growth spilling over from both Auckland and
                               Hamilton, tourist destinations like Raglan, established towns like Huntly and Ngaruawahia, and a substantial rural fringe.
                           •   Council’s overall plan is to “to be the most engaged community in NZ by 30 June 2020”.
                           •   As part of this, the 2015 Digital Enablement Plan stated an ambition for Waikato to be “the most digitally connected district
                               in NZ”.
                           •   The Council aims to reduce the digital divide, encourage broadband uptake and improve government services online.
                           •   Council is well-engaged in supporting the UFB2 rollout, and also supports community connectivity through the APNK
                               initiative in local libraries as well as other intiatives.

        Waipa              •   Strong sector for agriculture, & dairy in particular.
                           •   Key towns Cambridge and Te Awamutu already have fibre available, while smaller centres such as Kihikihi and Pirongia are
                               to be built in coming years.
                           •   Council’s “Future Waipa” website won several ALGIM awards in 2015.
                           •   Details of Council’s Digital Enablement plan and subsequent activities are currently being investigated.

        Hauraki            •   This small district supported a #GetDigital programme in late 2016.

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District            Summary
                                    •  This project aimed to help small businesses with everything from getting a Facebook page or setting up a website to
                                       engaging with Government via “RealMe”.
                            •   Supporting Chorus in running community awareness workshops in Waihi in April 2018, as UFB deployment is about to
                                commence.

        Matamata-Piako      •   This District is a powerhouse in the dairy industry.
                            •   This has brought leading edge ICT developments such as Spark’s Internet of Things (LoRa) trials and “fenceless farming tech”
                                company Halter.
                            •   In a 2015 survey, 56% of businesses believed they were restricted by poor broadband. However, Matamata and
                                Morrinsville are not scheduled to receive UFB until approximately 2020.
                            •   Digital Enablement plan proposed:
                            •   Free public WiFi at the 3 major libraries;
                            •   Establishing a “Digital Steering Group”;
                            •   Appointing a “Digital Champion” for the district;
                            •   Developing communications material to build community awareness;
                            •   Expanding the Morrinsville Training Centre for computer training; and
                            •   Increasing support for SeniorNet.
                            •   In March 2018 used augmented reality tech to create “Magical Parks” as part of Parks Week in the 3 major centres.

        Thames-Coromandel   •   Thames-Coromandel is a tourism mecca, but Council describes the seasonality of tourism as a “boom-and-bust” cycle.
                            •   Council sees ICT and broadband as way to encourage people to relocate permanently to the district, reducing the effect of
                                the “boom-and-bust”.
                            •   In late 2015 submitted one of the most comprehensive Digital Enablement Plans. This indicated a willingness to:
                            •   Accelerate consenting for broadband deployment;
                            •   Support programmes to increase awareness and uptake of improved ICT and broadband throughout the district; and
                            •   Co-invest alongside industry and central Government
                            •   The district is vulnerable to natural disasters and, being a peninsula, is geographically isolated along State Highway 25.

        South Waikato       •   Council deployed free public WiFi and improved CCTV in the Tokoroa CBD in 2017.
                            •   Building consent processes also went entirely online in mid-2017.
                            •   Tokoroa already has fibre available throughout.

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District     Summary
                     •   Council is assisting UFF in communicating with residents in Putaruru where fibre deployment is commencing.

        Taupo        •   In late 2015 submitted a brief Digital Enablement plan which expressed interest in working with other Councils on industry
                         events, digital showcases and educational materials.
                     •   Has for some years livestreamed Council meetings.
                     •   Launched a new “e-District Plan” in 2017, allowing properties queries from land-use zone to sun angles via a single
                         interface.
                     •   Key sectors include tourism, agriculture (especially dairy), forestry & wood-processing and geothermal energy.

        Otorohanga   •   Second smallest district in Waikato, with population just over 10,000.
                     •   Already has some Fibre to the Home due to Chorus deployment in private subdivisions in recent years.
                     •   Together with Waitomo DC, has commenced publishing “DigiTalk”, a one-page newsletter for local businesses on ICT –
                         aiming to raise awareness and increase uptake
        Waitomo      •   Smallest district in Waikato, with population just under 10,000.
                     •   In late 2015 submitted a Digital Enablement plan which would:
                     •   Promote community awareness of broadband and ICT;
                     •   Co-ordinate technology and training days;
                     •   Extend computer hubs to locations outside Te Kuiti; and
                     •   Consider introducing free Wi-Fi in commercial zones and high volume tourist visitor spots.
                     •   Purchase in early 2018 of King Country Energy by a consortium including Trustpower may prove important:
                     •   Trustpower intends to purchase the retail customer base of KCE;
                     •   Trustpower has been an active participant in broadband in recent years, and could offer KCE’s electricity customers
                         attractive plans to improve their broadband.

        Rotorua      •   A small portion of Rotorua District Council area lies within the Waikato Region.
                     •   As one would expect the Rotorua digital enablement plan had a heavy focus on tourism.

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Summary by key sectors
       Maori Economy
       •   The Waikato region has strong iwi, the second-highest Maori population of any region, and a
           highly successful Maori business culture.
       •   However, nationwide, only 68% of Maori-identifying households were connected to the internet
           in 2015 (NZ average: 83%).
       •   Maori are less likely than the national average to be studying in the ICT sector or to be employed
           in it.
       •   The 2018 Waikato Maaori ED plan includes several initiatives:
       •   To establish an online presence to disseminate information & business support;
       •   To advertise to whaanau how to access online material, mentoring, financial literacy tools and
           other services; and
       •   To create a portal & online directory for Maaori businesses in Waikato Region

       Source: Waikato Maaori Economic Action Plan and Agenda, February 2018.

       Connectivity to marae

           •    There are ~190 marae in Waikato region.
           •    Connectivity to each marae is variable:
                    o A number of remote towns have poor connectivity to their marae.
                            ▪ E.g. Kawhia (Maketu marae) ADSL1, outside UFB2+ & RBI2.
                    o Data from Maori Maps is in the process of being validated.
           •    Marae have the potential to be “wired” for community usage, with benefits especially in two
                circumstances:
                    o Urban communities with low ICT uptake due to low incomes e.g. Otangarei1,
                        Whangarei
                    o Remote rural locations e.g. Mitimiti2 (Matihetihe marae), Northland

       Notes: (1) See https://www.crowninfrastructure.govt.nz/wired-marae-brings-better-connections-
       whangarei-community/ (2) See https://www.mitimiti.nz/mitimiti-on-the-grid

       Source: Maori Maps (www.maorimaps.com)

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Dairy, sheep/ beef & agriculture
       At 6.8% of GDP, primary production is twice as important in Waikato as to NZ as a whole. More
       effective ICT usage can improve productivity, reduce costs and add value to primary products.

       Tourism
       A well-developed sector in Waikato, with multiple attractions and huge national and international
       visitor numbers. Better tech usage can improve tourist experience, add value and grow new
       markets.

       Manufacturing
       This large sector accounts for 1 in every 7 dollars in the Waikato economy. High-value manufacturing
       is already well-established. ICT can further improve operations, reduce costs and reach international
       markets.

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Health
       •   The health sector is highly complex and faces a range of challenges (e.g. financial, strategic,
           policy, regulatory, HR) inhibiting optimal uptake of ICT.
       •   Telehealth as a whole is at an early stage of development in NZ.
       •   At Waikato DHB:
               o Use of the SmartHealth app will be discontinued in May 2018, after high launch costs,
                    low uptake and claims alternatives offer superior functionality;
               o A virtual renal service offers care to patients from Raglan to Gisborne without leaving
                    their hometowns

       Education
       •   Of 301 schools across Waikato (as at 2016), all but 2 have access to fibre.
       •   The two without fibre are:
                o Waikaretu School, near Nikau Caves, Waikato District
                o Whareorino School, Waitomo District
       •   The vast majority (~99%) are now connected to Network 4 Learning (Wide Area Network for
           schools with high speed access, unlimited data and other features such as firewalling and
           filtering)
       •   There is increasing evidence that, properly implemented, e-learning increases student
           engagement and improves learning outcomes.
       •   E-learning is growing throughout the region. For example:
                o The ConnectED Cluster1 has expanded from an ICTPD group in Hamilton
                    and now includes over 30 schools;
                o Volcanics2 is a South Waikato e-learning cluster, where 10 schools
                    collaborate to offer students classes via video-conference.

       Notes: See 1. www.connected.org.nz 2. www.volcanics.school.nz

       Non-Government Organisations
       SeniorNet
       •   Focus on helping seniors access the internet, devices, key applications, social media etc.
       •   13 branches across region:
               • 1 branch in each of the following Districts: Waikato, Hamilton, Waipa, Hauraki,
                  Matamata-Piako, South Waikato, Taupo, Waitomo
               • 5 sites in Thames-Coromandel District.
       •   Covers most major towns but not Te Awamutu, Otorohanga, Tokoroa, Thames, Waihi.

       Web Access Waikato Trust
       •   Focus on helping families access the internet.
       •   Well-established local partner of 2020 Trust/ Computers in Homes.
       •   Has 20 established partners across the region:
               o 6 marae/ communities centres
               o 4 schools,
               o 4 libraries,
               o 2 health centres
               o 4 other (churches, businesses)
       •   Aiming to form 5 new MoUs at present.
       •   Distributes Spark Jump & Computers In Homes.

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•   Discontinuation of Computers In Homes funding in 2017 has affected programmes.

       OMGtech!
       •   Focus on enabling youth, with a strong Maori world view.
       •   Runs coding clubs, workshops etc. with technologies ranging from Virtual Reality to game
           development to digital fabrication.
       •   Funded by TPK and Ka Hao (Maori ICT/ digital investment fund).
       •   Commenced in Waikato in Sept 2017.
       •   Operating in Ngaruawahia and Huntly.
       •   Seeking to expand to a further 3 locations.

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