A telecommunications expert says the government needs to provide more financial certainty to industry players, and direct the education and health sectors to use the planned ultra fast broadband network.
Independent telecommunications analyst Paul Budde says complementary government policies are needed to underpin demand.
Mr Budde says health and education money should be diverted into broadband services that would have otherwise been invested in retirement homes and medical and tertiary buildings.
He is critical of the proposed 33 local fibre company model, saying they will be too small to make money and deliver the services needed.
Mr Budde says a national system is needed with one billing system and one wholesale organisation. The proposed plan also leaves out rural New Zealand.
The Government is investing $1.5 billion into a fibre network.