Cost Benefit Analysis of New Zealand’s Broadband Strategy

The problem

Plans to subsidize expansion of broadband networks in New Zealand threatened to distort the telecommunication market. Private service providers worried about the effects on their businesses.

How we helped

Castalia analyzed the costs and benefits of the proposed subsidy. We found that, as initially proposed, the subsidized expansion would cost more than the benefits it was expected to deliver were worth. We suggested a different design for the broadband roll-out plan, to maximize the benefit: cost ratio, and minimize distortion of the competitive market.


The broadband expansion went ahead, using a subsidy design similar to that which we had recommended.

The client

Telecom New Zealand (now Spark)

TelstraClear (acquired by Vodafone New Zealand)

Vodafone New Zealand

Our team

Alex Sundakov

Alex Sundakov

Executive Director
David Ehrhardt

David Ehrhardt

Chief Executive

How can we help you?

How can we help you?