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The problem with this model would be actually convincing a large majority of residents. The New Zealand Government is funding fibre to most cities and towns in New Zealand. Currently they're at 15% of their target population covered, and only 3% of those 15% are connected with UFB (ultra fast broadband) service.[1]

I should note, these fibre services are a free installation for residential use and many businesses. Monthly charges are the same price as ADSL2+ internet is here.

1. http://northpowerfibre.co.nz/index.php/news/entry/slowly-int...

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