Old-school Telecom payphones in central Auckland in 2004. Photo \/ Getty<\/p>\n
Those services would have been funded through digital advertising on the booths, and that was the sticking point.<\/p>\n
Sources on both sides of the debate previously confirmed the council wanted its share of a return from the proposed advertising.<\/p>\n
The council views footpaths as highly valuable public property, whereas Spark doesn\u2019t receive government funding for payphones and considered the council\u2019s position a project-killer.<\/p>\n
Without a deal in Auckland, a nationwide rollout of new booths \u2013 expected to cost around $50 million \u2013 was not commercially viable, Spark said today.<\/p>\n
\u201cWe recognise that phone booths can be an important lifeline for some of New Zealand\u2019s most vulnerable people, particularly those without reliable access to a mobile phone or internet connection,\u201d Spark chief corporate affairs officer Leela Ashford said.<\/p>\n
\u201cThey are often used to contact essential services, including social development agencies, banks and emergency services.<\/p>\n
\u201cWhile we are disappointed that we have not found a way to proceed with our proposed investment, we remain open to revisiting the modernisation proposal if circumstances change in the future.\u201d<\/p>\n
Auckland Council general counsel Meredith Webb said today the council had made \u201cno decision to stop or block Spark\u2019s proposal\u201d.<\/p>\n
She said the council had met with Spark on multiple occasions, but no formal application for new booths was ever made.<\/p>\n
\u201cAn application is required because commercial digital billboards on public footpaths sit outside the infrastructure that can be installed in the road corridor under the Telecommunications Act. <\/p>\n
\u201cAs with any proposal to place commercial billboards in the road corridor, Spark needs to follow an approval process, which manages competing uses in this public space, and which protects the public interest. <\/p>\n
\u201cIf Spark wishes to progress the proposal any further, the council remains open to further discussions and guidance.\u201d<\/p>\n
Earlier, Spark said it was aware of relevant bylaws that governed digital screens, and it was happy to comply with those.<\/p>\n
\u201cIn Auckland, the installation of phone booths with digital screens of the type and specification we are proposing is a permitted activity under the Auckland Unitary Plan and we have already applied for and obtained certificates at over 50 sites,\u201d Ashford said in a statement in June.<\/a><\/p>\n \u201cWe have engaged in discussions with council and AT on the significant public value that upgrading our phone booths will have. <\/p>\n \u201cWe have not proceeded with formal applications, because in these discussions it was made clear to Spark that our proposed activity would be subject to rent-like charges, which we believe are not permitted under the Telecommunications Act.<\/p>\n \u201cGiven the significant upfront capital investment required and the ongoing cost of free connectivity and maintenance [which would be borne solely by Spark and our out-of-home partner], this requirement would make the project commercially unviable. <\/p>\n \u201cThis is why we have sought clarification on the act, rather than continuing to proceed with applications in Auckland.\u201d<\/p>\n The removal of phone booths<\/p>\n Spark said modernised phone booths with advertising operated in cities including London and New York. In Australia, around 25 million calls were made each year from phone booths, including around 300,000 emergency calls.<\/p>\n As Chorus retired the copper network, Spark said today it was now working with councils to \u201csafely and responsibly remove existing phone booths\u201d. <\/p>\n Spark also said today it had stopped selling and reordering phone cards.<\/p>\n