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BDFL
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Topic # 77509 17-Feb-2011 10:32 Send private message

Just received


Joyce on Vector and UFB priority negotiations

The Minister for Communications and Information Technology, Steven Joyce, says Crown Fibre Holdings’ announcement that it has elected to negotiate with Vector for the roll out of Ultra Fast Broadband in Auckland is another positive development for the project.

Vector was short-listed for the UFB Initiative in September 2010, but will now enter into prioritised negotiations with Crown Fibre Holdings (CFH), the organisation responsible for the Government’s investment in UFB. 

Telecom is also in prioritised negotiations for Auckland and much of the rest of the country.
“The government has always been keen on a competitive process that will deliver the best value for taxpayers and the best outcome for users,” says Mr Joyce.

“Vector and CFH have now got to the point where they can enter advanced negotiations.  This means we now have two strong candidates in the picture for Auckland.”

Mr Joyce says he is pleased that negotiations continue to progress and that bidders continue to step up.
“This is a very exciting time for telecommunications in this country and I am confident that CFH will deliver the best result for New Zealanders,” says Mr Joyce.

Crown Fibre Holding’s announcement today follows the confirmation of other parties prioritised for negotiations last year.  They are:

Alpine Energy for Timaru
Enable Networks for Christchurch and Rangiora • Flute Joint Venture represented by Aurora Energy Ltd for Dunedin
Telecom for 25 candidate areas, including Auckland 

In December, Northpower and UltraFast Fibre Limited were confirmed as partners with the Government to rollout out ultra fast broadband in Northland and in the central North Island (respectively). 
 




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  Reply # 440600 17-Feb-2011 10:39 Send private message

interesting.

Think this means that Vector have a genuine shot? Or are CFH just using it as leverage to force Telecom to improve their bid?



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  Reply # 440602 17-Feb-2011 10:42 Send private message

And from Vector:


Vector progresses in Fibre bid process

Vector welcomed the announcement made today by Crown Fibre Holdings (CFH) that the company has been selected for priority negotiations for the Government’s ultra fast broadband initiative.  

Vector Chief Executive Simon Mackenzie said Vector had continued to negotiate key commercial principles with CFH and were now in a position to undertake further negotiations regarding contractual terms and conditions for Vector to rollout fibre to Aucklanders.  

“Ultra fast broadband is a major initiative for New Zealand and the Auckland region more broadly and we want to get it right. We have supported this initiative from day one and consistently said that Vector would continue to participate as long as it makes commercial sense.  

“Our proposal to Government is for Vector to deliver fibre to the door of every premise in Auckland within eight years.  

“Vector can build a world class fibre network quickly and is ready to start as soon as these negotiations are concluded,” said Mr Mackenzie.  

Mr Mackenzie said Vector continued to work closely with the New Zealand Regional Fibre Group to develop aligned and unified local solutions for New Zealanders to deliver the step change that Kiwi’s expect from this initiative.   

 




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  Reply # 440605 17-Feb-2011 10:47 Send private message

Cool. They are going to dig up the roads again - see Quay Street in downtown.

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  Reply # 440680 17-Feb-2011 12:58 Send private message

Hasn't vector already rolled out a lot of fiber over the past 10 years in Auckland?? Yeah. More road works. Just what we need.... not..




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  Reply # 440701 17-Feb-2011 13:31 Send private message

old3eyes: Hasn't vector already rolled out a lot of fiber over the past 10 years in Auckland?? Yeah. More road works. Just what we need.... not..


If you go to http://www.broadbandmap.govt.nz/map/ select vector then zoom in on Auckland you can see they have a significant "backbone" through the region. 

For fibre to the home, EVERY street and EVERY home/business is going to be connected via fibre.

Fibre can be deployed in many ways, various different trenching techniques and every strung on power lines.

Google had a "micro trenching race" at their campus last year which was interesting.
http://www.youtube.com/watch?v=hXMe6WGa84I

However, seriously how you expect the UFB to be completed without significant road works?





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  Reply # 440705 17-Feb-2011 13:40 Send private message

I get the impression that CFH might be looking at Vector very seriously. I would be.

Those figures on the Telecom break down of profit between units doesn't make sense for Telecom to split to me so far.

Telecom already has just upgraded its copper network past what the ISP cores can deal with now from what I can tell. Now they've got those cabinets in place, just how much more value can they ring out of that copper? Sure in some places, very little, but over all?

What will cause Telecom not to just lock up the fibre for 2 decades while it rings return out of NGN?

Also what will push Telecom to deliver 60/30 on it's NGN?

Then we could ask the same sort of questions about Vector.... what will push them to drive business on to the fibre and not just do what other providers have done and deliver a Me2-10% service? Telecom.

Two competing networks in Auckland makes sense to me. Then no one gets the upper hand any more?

D




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  Reply # 440707 17-Feb-2011 13:45 Send private message

A further benefit that I can see is it creates a more open door way for Pacific Fibre to push data to consumers.

The problem I see with Telecom is it has a clear conflict of interest because it owns a bit of SCX.

Non Telecom LFCs, with FX, Telecom, Telstra all providing backhaul, and 4 or 5 retail providers, with a bunch of smaller niche or local providers, really does seem the best outcome for New Zealanders to me.




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  Reply # 440733 17-Feb-2011 14:38 Send private message

Ragnor:
However, seriously how you expect the UFB to be completed without significant road works?


Probably by stringing it up on the power poles but then you need to be an electricity network company (or friends with one).

Oh, that's right, Vector is one already. Smile

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  Reply # 440738 17-Feb-2011 14:50 Send private message

 

Two competing networks in Auckland makes sense to me. Then no one gets the upper hand any more?


D


 

Competition makes sense, but can NZ as a country afford it. The population of NZ will end up paying for both networks and NZ is not a rich country. I suppose it makes more sense in Auckland than anywhere else, but Auckland is still very spread out. Two competiing networks may also only create a duopoly, not competition.

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  Reply # 440739 17-Feb-2011 14:52 Send private message

wired:
Ragnor:
However, seriously how you expect the UFB to be completed without significant road works?


Probably by stringing it up on the power poles but then you need to be an electricity network company (or friends with one).


Oh, that's right, Vector is one already. Smile


 

Then you end up with thick wires everywhere like we got in Wellington after Saturn / now telstra installed much of their network on the power poles.

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  Reply # 440782 17-Feb-2011 15:47 Send private message

mattwnz:
wired:
Ragnor:
However, seriously how you expect the UFB to be completed without significant road works?


Probably by stringing it up on the power poles but then you need to be an electricity network company (or friends with one).


Oh, that's right, Vector is one already. Smile


 

Then you end up with thick wires everywhere like we got in Wellington after Saturn / now telstra installed much of their network on the power poles.


No it's ok, because it's a lines company everything is different. Residents love more power.

The sheaths protecting the fibre are a lovely neon yellow colour, so you can see them. No opportunity to miss them, good for everyone.....




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  Reply # 440797 17-Feb-2011 16:34 Send private message

antoniosk:
mattwnz:
wired:
Ragnor:
However, seriously how you expect the UFB to be completed without significant road works?


Probably by stringing it up on the power poles but then you need to be an electricity network company (or friends with one).


Oh, that's right, Vector is one already. Smile


 

Then you end up with thick wires everywhere like we got in Wellington after Saturn / now telstra installed much of their network on the power poles.


No it's ok, because it's a lines company everything is different. Residents love more power.

The sheaths protecting the fibre are a lovely neon yellow colour, so you can see them. No opportunity to miss them, good for everyone.....


It's not yellow it's grey and it's nowhere near as thick as the bundles of coax cable that Saturn strung all over Wellington.  Also, being fibre it can be strung with the power cables and not below them.

If you look closely enough there is already fibre with some power lines in Auckland Smile

You can see pictures here:
http://www.nbr.co.nz/opinion/chris-keall/the-unbearable-ugliness-fibre

The grey one in the middle is the overhead duct, the orange ones are designed to be buried.

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  Reply # 440811 17-Feb-2011 17:27 Send private message

re "
A further benefit that I can see is it creates a more open door way for Pacific Fibre to push data to consumers.

The problem I see with Telecom is it has a clear conflict of interest because it owns a bit of SCX.

Non Telecom LFCs, with FX, Telecom, Telstra all providing backhaul, and 4 or 5 retail providers, with a bunch of smaller niche or local providers, really does seem the best outcome for New Zealanders to me.


Doesnt apply as Telecom would have to demerge. The network business will be nothing to do with SOX.






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  Reply # 440812 17-Feb-2011 17:32 Send private message

mattwnz:  Competition makes sense, but can NZ as a country afford it.


At 5k5 per home, I've been asking that same question.  If you only get 50% uptake then you end up with what average price per home?





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  Reply # 440817 17-Feb-2011 17:47 Send private message

ascroft: Doesnt apply as Telecom would have to demerge. The network business will be nothing to do with SOX.


Ok, I'm completely confused about this whole splitting up of Telecom thing...

Who's going to own what?

Telecom - Retail/Mobile/SCX shares ?
Chorus - Fixed Copper/Exchanges/Fibre ?

Assuming I understand the Chorus bit, then the copper NGN will compete with the Fibre?

Where as if you have:

Telecom - Retail/Mobile/SCX shares
Chorus - Fixed Copper/Exchanges
Vector - Fibre

Then Telecom has a choice of last mile providers of some size.  Wouldn't that give Telecom a stronger hand to keep the wholesale competition from getting out of hand and just pushing up prices because they can?

I can see Telecom becoming our best ally or Chorus becoming a big problem depending on how things are done.

D




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