Christchurch City Networks (CCNL) reported a net-loss of just over $300,000 at its AGM yesterday, a result it says is ahead of forecast and indicates a positive earnings result is possible in 2009.
“The CCNL fibre network now has very good coverage of the CBD and other business areas across Christchurch,” says company CEO Steve Fuller.
“The availability of unlimited bandwidth also solves many of the technology constraints that the health sector has had to work around in the past, and this has seen considerable take up by health providers in the city."
One example, he says, is the Christchurch Radiology Group using the network to deliver high quality, real-time medical imaging around the city.
CCNL says the list of technology service providers using its network is growing rapidly due to it being an open access network. Any company can purchase or include the CCNL network as part of its services.
The company recently entered into a 15-year contract to supply fibre network capability to NZ Communications, to support the new mobile network entrant, which will be launched in Christchurch early next year.
Local service provider SNAP is making use of the CCNL fibre to deliver a range of services including internet, storage and national bandwidth to its corporate and business customers, CCNL says.
CCNL has also just signed a multi-million dollar agreement with Transpower to deliver a communications and control network for that company's electricity assets and operations in Christchurch.
CCNL is a wholly owned subsidiary of Christchurch City Holdings (CCHL) which is the investment arm of Christchurch City Council. The formation of CCNL was lead by the council and Canterbury Development Corp and was partially funded by the Ministry of Economic Development.
CCNL's $10.6 million dark fibre network, announced in December 2006, is planned to cover around 100km by the end of 2008. The Ministry of Economic Development contributed $3.75 million plus GST to the investment as part of the government's Broadband Challenge programme.