Orcon CEO Scott Bartlett, Chorus External Communications Manager Robin Kelly and Head of Industry Relations Craig Young, and TechDay’s Sean Mitchell will answer your questions and provide practical information on how you can make the most of UFB.
If you live in Auckland this is clearly a fantastic opportunity to learn about the UFB project and understand how fibre will be installed to your home or business. A free breakfast is also a great selling point!
For more details check out the Orcon website
With internet traffic growing year on year and users continually expecting faster data speeds, one area that still causes issues is how to carry those bits and bytes around a building or home. If a premises doesn’t have cat5e or cat6 cable for Ethernet, retrofitting it can be an expensive and very time consuming process. Wireless can be a solution, but still can’t deliver the sorts of speed that Ethernet can, and installing a reliable high speed wireless network in a building still requires cabled access points if decent speeds are to be maintained. One solution to this problem is the HomePNA standard which allows data to be carried over existing copper or coax cable, completely avoiding the hassle of having to run Ethernet cable, and delivering speeds faster than wireless. The HomePNA 3.1 standard offers speeds of up to 200Mbps, support for 802.1Q VLAN tagging, fully transparent Quality of Service (QoS) using 802.1p, and supports cable runs up to around 1km. When deployed over coaxial cable the technology is referred to as HCNA (HPNA over Coax)
Late last year I trialled some Netsys NH310 units from Snappernet. These units allow existing TV coaxial cable to be used to carry Ethernet data, in much the same way cable modems work over the TelstraClear Cable TV network using the DOCSIS standard. By using different frequencies than the TV signals, both can be combined and run over a single coaxial cable. These units feature 100Mbps Fast Ethernet ports, and in real world testing deliver speeds of around 90Mbps – fairly typical for a 100Mbps device. Over the coaxal cable the HPNA protocol supports speeds of up to 200Mbps, so the 100Mbps fast Ethernet ports are in effect a bottleneck in the system. Up to 64 slave units may be connected to a single master unit, all of which will share the available bandwidth.
The Netsys HN310H Master unit features 5 Ethernet ports and 2 coax F connectors, one for the TV aerial input, and the other for HCNA out. The HN310C slave unit features 2 Ethernet ports, and 2 coax F connectors, one for the HCNA input, and the other a passthru port to connect into your existing TV or Set Top Box (STB). While setup of this hardware may look simple, some knowledge of MATV (master antenna TV) or SMATV (satellite master antenna TV) is essential to deliver the optimum performance from this hardware. 16dBM isolation is recommended between the master and slave units, with a minimum of 8dBm isolation required for these devices to function correctly. If your setup has isolation of between 8dBM and 16dBM and is also being used for TV distribution you may need to use of a high pass filter between the slave passthru port and TV/STB to avoid any interference to the TV signal. In many MATV or SMATV distribution networks 16dBM TAP’s are installed as standard so this is a perfect match. The HCNA standard uses frequencies between 15MHz and 40MHz so this hardware can happily co-exist with both terrestrial and satellite distribution networks.
One thing to be aware of is that most TV amplifiers sold in New Zealand and Australia used in MATV/SMATV distribution networks don’t support a return path, ie. they will block signals from travelling from the output port of the amplifier to the input port. This means that master and slave units must both be installed on the output side of the amplifier. If there are multiple amplifiers you’ll either need to install multiple master units, or replace the amplifiers with units that support a return path. Many splitters, diplexers and TAP’s sold in NZ also only support frequencies from 45MHz upwards, so these will also need to be reviewed and replaced with equipment that supports frequencies from 5MHz upwards.
Configuration is done using the web interface on the master unit. Once the master unit is configured and slave units hooked up to the coax network they appear in an access list with their MAC address, here they can be associated a plan speed if required, with a number of predefined speed options being available. Individual VLAN’s can be assigned to both of the RJ45 ports on the slave units from the web interface, and there are a number of diagnostic tests available to show signal level and network performance of each individual slave unit.
These units are a very cost effective way of delivering Ethernet to hotel or motel environments that will typically have coaxial cable for TV but no Ethernet cable. With Ultra Fast Broadband (UFB) due to hit NZ this year, this hardware could also provide solutions to premises where retrofitting cat5e or cat6 cable for Ethernet is going to be costly. Other HPNA equipment also exists that runs over copper cable, so existing cat3 phone cable can also be utilised without needing to look at more expensive xDSL based solutions.
Overall the setup is relatively straight forward, and once installed the performance is brilliant. There are certainly plenty of small issues that could arise attempting to install these in an existing MATV/SATV setup, and if you have no knowledge of TV distribution networks, and I would highly recommend anybody thinking about this solution seek outside advice from somebody with knowledge of MATV/SMATV setups.
The real world performance of these units is awesome, and they were chosen for a large scale deployment in an apartment building here in Wellington delivering high speed symmetrical internet connections with VoIP services. The bonus of being future proofed for higher speeds in the future means that delivering a 100Mbps service to customers with a good CIR is totally within the capabilities of this product. Overall they’re a product that creates a fantastic solution and comes with with a great price point.
<shameless plug on> If anybody is interested in looking at these as a solution for a environment such as a hotel, motel, or apartment block I’m happy to provide consultancy advice or work with you on deploying a solution, my details are listed on the right. <shameless plug off>
With the exception of 0800 numbers used by pizza chains, 111 is probably the most recollected phone number in NZ. It’s a number drummed into children from a young age, and the vast majority of us know it’s the number to call if you need urgent assistance from the police, fire service, or an ambulance. Around 3 million 111 calls are made each year in New Zealand.
One thing many people are unaware of however, is that the 111 service is totally independent of all three emergency services. A call to 111 isn’t answered directly by an emergency services call taker, it is actually answered by a Telecom employee at a Telecom call centre (known as an ICAP – Initial Call Answering Platform) in either Christchurch or Wellington who will establish the service you are after and then forward the call on to the service you have requested – police, fire or ambulance. The call will then be answered by an emergency services call taker in one of six communications centres across New Zealand – three combined Police and Fire communications centres in Christchurch, Wellington and Auckland if you have requested police or fire, or three standalone ambulance communications centres that are also in Christchurch, Wellington or Auckland if you have requested an ambulance. Job details will be collected by en emergency services call taker who will action your call. In this modern era the communications centres in all three cities are linked together, meaning that your call could easily be answered by a call taker in another city if a major incident is occurring that results in large numbers of simultaneous calls swamping the nearest communications centre.
Telecom have provided the 111 service since it’s inception in the 1950’s, and up until the late 1990’s were the logical provider of such a service since they were the only provider of Public Switched Telephone Network (PSTN)landline phone services in the country. Mobile phones were also still still in their infancy, and Telecom were the largest mobile provider in the country. The last decade has seen significant change in the marketplace – we now have Telecom, Vodafone and 2degrees providing mobile services (along with a number of resellers piggy backing on the Telecom and Vodafone networks), and 65% of 111 calls now made from mobile phones. A large number of other telecommunications companies and internet service providers (ISP’s) also now provide phone services, either over copper phone lines in the same way Telecom have historically done, or using Voice over Internet Protocol (VoIP) carried over the internet.
In light of several recent issues on the Telecom network that may have resulted in the inability for some 111 calls to be be connected, the Ministry of Economic Development (MED) commissioned a discussion document looking at the background of the 111 service and whether changes should be made to the service going forward. Public submissions are open, and this is your chance to have a say on how the 111 service is funded and operates.
I’ll briefly touch on a few issues that are worthy of some thought – many are discussed in the MED discussion document, but I thought I’d add a little food for thought for those who may want to send in a submission.
- With a growing number of 111 calls being made from mobile phones, should mobile carriers and emergency services communications centres upgrade their networks to support the ability to track the location of mobile phones while the call is in progress? This service (E911) has been in place in the USA for some time and requires all phones sold to have a GPS chipset in them and support the E911 service. While we may think such a feature is great to have, who should actually fund the upgrades to support it? Many low end GSM phones don’t support such a feature – would the price of mobile phones increase if such a feature was mandated? Network based triangulation services can also be used to locate a device, but once again this still requires upgrades to support the capability.
- As we move into a VoIP word, a phone is no longer tied by a physical address, and a 111 call could be made from anywhere in the world where an internet connection is available. How do emergency services go about tracking the location of a 111 call if the situation is one of life and death? Some people have chosen to replace their landline phones with VoIP services such as Skype that doesn’t support 111 calls. Should clear warnings have to be displayed by services that don’t support the ability to call 111? The public perception is still that any phone can be used to call 111, in reality this is no longer the case.
- Some providers in New Zealand (2talk being a key example) don’t provide customer address details to the TESA database. This database contains phone numbers and address details and allows emergency services to respond to the address of a 111 non speech or call hangup made from a landline or VoIP phone by doing a reverse lookup on the CallerID. If you call 111 from a phone provided by a provider that doesn’t provide details to the TESA database, emergency services and the 111 call taker will have no idea of your location, and will be unable to respond without the caller providing address details - something that may not be possible in some circumstances. Like the issue above, should providers who don’t supply details for the TESA database be required to clearly warn end users that calling 111 is not supported? Should providers who don’t support 111 calling be required to supply stickers that are required to be fitted to all phones warning that 111 calls are not supported?
- Should Telecom still run the 111 ICAP call centres? These costs approximately $4 million per year to run, and are funded primarily by an interconnect charge each time a 111 call is made. While the 111 service is free for end users, your phone provider is ultimately paying $2.36 for your 111 call. Should 111 be funded through a user pays interconnect fees when 111 is called (as it is now), or funded directly (and possibly even run by) the government? Should running these call centres be put out to tender?
- Currently every 111 call, even those from outside the Telecom network (ie a 111 call from a Vodafone mobile) interconnects with the Telecom network, typically at the closest Telecom point of presence (POP) that offers voice interconnection, of which there are 29 nationwide. The call is then carried within the Telecom network to in the 111 ICAP call centres in Wellington or Christchurch.. As we move forward into a competitive marketplace with a growing number of providers offering phone services, the discussion needs be occur as to whether this is the most logical way of doing things. Up until a few years ago every phone call, even if it didn’t involve a Telecom customer, had to transit the Telecom PSTN network to be connected to the other network. This no longer occurs, with multiple carriers now having their own interconnections, and as we move towards a VoIP world interconnections directly between other providers will become the norm. Should a 111 call from Vodafone (for example) have to interconnect with the Telecom network, or would it be more logical for a provider such as Vodafone to provide their own direct interconnects with the 111 ICAP call centre? With Telecom committed to replacement of it’s legacy PSTN network and a move to VoIP by 2020, is being responsible for the entire 111 system an obligation that Telecom still want to be burdened with?
- With VoIP now becoming mainstream through product offerings such as WxC’s VFX and Orcon Genius many people have a dialtone generated by their residential gateway (RGW) or an analogue telephone adapter (ATA) on their premises. In the PSTN world the dialtone was generated by the legacy Telecom NEAX exchanges that form the core of the PSTN network. These exchanges have both battery backup and generators to ensure they can operate for extended periods of time during is a power cut, but even with the NEAX phone exchanges still functioning after the Christchurch earthquakes, many people found themselves unable to make calls because their cordless phone had no power to operate – non powered analogue phones continued to work fine. As we move into a fibre world with the ultra fast broadband (UFB) rollout the vast majority of homes will find their phone connection moves to a VoIP one, and the optical network terminal (ONT) and/or RGW or ATA within their home require power to provide internet and phone services. Should the installation of a battery backup or uninterrupted power supply (UPS) be mandatory as part of every UFB install? If so, who’s responsibility should it be to maintain this and swap out the batteries every few years to ensure that it stays operational? Even with a UPS or battery backup, the service may still only be able to maintained for upwards of 12 hours. Telecom’s NEAX exchanges and Chorus cabinets can be kept running indefinitely on backup power. Should a large scale event resulting in a loss of power for several days occur in a UFB world, people will find themselves unable to make 111 calls from their landline phone and may struggle to charge their mobile phone. No matter what approach is taken, going forward we’re ultimately going to have a network delivering primary voice lines with uptime figures that won’t necessarily be able to match the 50 year old technology it’s replacing. Power is the Archillies’ heel of our next generation networks.
Telecom have done a magnificent job over the years building and maintaining a robust PSTN network that is still world class. The ability to make an emergency call is a core requirement of any phone network, and failures aren’t just an inconvenience, they could make the difference between life and death. With the split of Telecom into retail and network arms the “Telecom” as we used to know it no longer exists, and it’s a good time to review 111 calling as we enter an era of significant change in the New Zealand telecommunications sector.
The MED have a copy of their consultation document document and details for sending in a submission on their website: http://www.med.govt.nz/sectors-industries/technology-communication/communications/emergency-call-services/emergency-call-services-111-review
I couldn't help notice the deal on Spreets today, only $160 for a "GPS Navigation & Multimedia System that Includes an eBook Reader, Games, & Music & Movie Player! Worth $455. Delivery Included"
This product is apparently an essential trip to take on holiday "Don’t head off on your summer holiday road trip without it!" the promo blurb says. It features "the latest in GPS navigation technology".
This is fine if you live in Australia. If you read the fine print this units has the "latest Australian maps pre-loaded", with no mention anywhere of the inclusion or ability to load New Zealand maps onto it.
Even worse the Spreets page claims the product is worth $455. I wonder why the company that is distributing it only sells it for $345 including free delivery, and a 10% discount if you pay by credit card?
Is this really a bargain? Or just an overpriced piece of junk that in all reality is virtually worthless for it's intended purpose in NZ? That's up to you to decide, but I certainly won't be buying one.
Now some pricing and coverage maps from Telecom. Note the call duration discounts, and free minute if your call is dropped. Obviously calls don't drop any longer! I have the entire set of NZ coverage maps if anybody is keen on looking at other areas.
The Sharp Zaurus was clearly the must have toy of the year if you could afford it!
I've got a rather extensive collection of mobile pricelists, coverage maps and newsletters from both BellSouth and Telecom from throughout the 90's, and thought it might be interesting to share some of this. First up is some BellSouth Coverage Maps and Pricing from 1996.
I’ve been a Vodafone Phone Insurance customer now for around 12 years, joining (from memory) not long after they made the service available. In that time I’ve made two claims, one in 2001, and another in 2011, and in both cases found the service great – I lodged claims and within days had a brand new replacement phone. Overall I’ve been happy paying my premium each month for the service they provide.
Earlier this year Vodafone faced some criticism after a Target show criticised their policy of replacing some handsets with refurbished models. In late October a new policy document was sent out to all customers clearly explaining that refurbished handsets may be used as replacement. It now seems that Vodafone have taken things a step further, and on the weekend I received a letter from Vodafone explaining new changes to the Vodafone PhoneInsure policy. If a refurbished phone is sent out as a replacement, a lower excess will apply, and if you’re somebody who tends to lose or destroy phones on a regular basis, higher excess charges apply for a 2nd and 3rd phone claimed on within a year.
Apart from some other minor changes, Vodafone assure us (in bold) that “Everything else stays the same”.
As a reader of fine print I started reading the included policy document and was shocked to see some other major changes to the policy, changes that Vodafone clearly don’t see as being significant enough to mention in the cover letter where they have told us that “everything else stays the same”
According to the policy document cover is now only provided on a mobile phone that is purchased from Vodafone. This means any phone purchased overseas or from any other network or retailer in NZ will no longer be covered by Vodafone PhoneInsure. Previously the origin of handsets wasn’t an issue, and nowhere in previous policy documents was any reference made to handsets, other than Vodafone refusing to replace imported 1st generation iPhones with newer models.. Both of my historical insurance claims have been on handsets that were not sourced from Vodafone, so quite clearly this has never been an issue in the past.
Vodafone clearly don’t think this is an issue that’s important enough to mention in the cover letter, and clearly don’t think it’s a significant change (“Everything else stays the same”), but I consider this this a significant change to the policy, especially as it could result in people who are presently covered being ineligible to claim after these changes take effect in January.
If you’re a Vodafone PhoneInsure customer and use a handset that was not purchased from Vodafone then you’ll probably want to review your policy. Paying money each month when you’re not going to be covered isn’t a great idea!
Around the same time that ULL legislation was introduced, Telecom also agreed to a Government mandated plan to deliver improved broadband speeds to homes and businesses. The cornerstone of this plan was the deployment of a Fibre To The Node (FTTN) network by Chorus, who planned to install around 3500 fibre optic cable fed roadside cabinets nationwide as part of a project known as "cabinetisation". Delivering minimum connection speed of 10Mbps to 80% of New Zealand households and businesses, these cabinets have fibre optic cable linking back into the Telecom network, and contain an Alcatel Lucent 7302 ISAM to provide xDSL services. The architecture of these cabinets is relatively straight forward - the existing copper feeder cable that runs from the Telecom exchange is terminated in the new cabinet on a new Master Distribution Frame (MDF), and existing cabling that runs to local homes and businesses is also terminated on another MDF inside the cabinet. Each line is then connected to the xDSL linecard in the ISAM in the cabinet, meaning that at the press of a few keys xDSL service can be enabled or disabled on a customer's line. Voice services are still provided by Telecom's NEAX switch located in the nearby exchange, and are carried over the copper feeder cable that connects the exchange and cabinet. In some cases where it's been deemed that the copper feeder cable is at, or is approaching the end of it's serviceable life, VMUX hardware is fitted to carry voice calls over IP using the fibre backhaul to the exchange, rather than over the copper cable.
The installation of these cabinets means that the distance of the local loop (the copper cable that runs between the exchange and the premises) was reduced significantly, with close to 50% of premises being less than 500m from a cabinet, and 80% within 1km of a cabinet. Because xDSL performance is dependent on the distance the end user is from the equipment, the shorter the local loop, the better xDSL performance will be. By the end of 2011 when the cabinetisation project is complete, around 80% of the premises in NZ should have an average theoretical DSL sync speed of around 12Mbps to 14Mbps. Homes within 500m of a cabinet or exchange should be seeing ADSL2+ internet speeds of around 15Mbps.
As part of the industry consultation process before the rollout of the cabinetisation project, Chorus warned of the impact the cabinetisation project would have on ULL providers due to an issue known as midpoint injection - an issue which is now causing significant impact to many consumers who eagerly signed up to ULL internet plans over the past couple of years.
DSL signals use frequency bands of the radio spectrum that aren't used by voice, allowing voice calls to coexist on the same copper pair with ADSL/ADSL2+ and VDSL signals. Because copper cables used in the network infrastructure typically carry many pairs bundled together, it's possible for signals from nearby pairs to cause interference with each other, something known as crosstalk. Because the ADSL signals transmitted from the new ISAM in the cabinet are a lot stronger than the signals that's have had to travel from the ULL gear in the exchange, the DSL signal from the exchange is in in effect drowned out, resulting in a significant degradation of the xDSL signal, and ultimately slower internet speeds from the ULL connection. Even if the crosstalk had minimal impact, the distance the xDSL signal has had to travel from the exchange means it will always deliver slower speeds than a xDSL signal from the cabinet.
When carriers such as Orcon, Slingshot and Vodafone started installing their own equipment in Telecom exchanges across Auckland they received plenty of media attention and were keen to tell anybody who was keen to listen how great this move was. Competition had come they exclaimed, promising in some cases to offer better, cheaper broadband and phone services to end users. What is unclear is whether these providers clearly understood the implications of the cabinetisation project, and more importantly the effects of midpoint injection that Chorus had warned of in their industry briefings. Move forward to now, and their eagerness to sign up customers is arguably resulting in many of their customers receiving a substandard service, with many being unaware of the problem, or the solution.
In the last couple of months Chorus have been busy completing the last stages of their cabinetisation project, which has included the installation of several hundred new cabinets in the Auckland region. Many of these new cabinets are connected to exchanges serving customers that are currently on ULL connections, and the immediate result for most of these customers is a line with increased attenuation, which will result in a degraded DSL service with slower speeds. The solution to the problem is straight forward, the ISP simply needs to migrate these users from their own ULL gear in the exchange and connect them to the Chorus ISAM in the cabinet using a Telecom Wholesale UBA connection. In the real world however, the business case for such a move isn't quite so simple. Because DSL services offered by Telecom Wholesale are a regulated product with pricing set by the Commerce Commission, the net cost to the ISP increases significantly as the cost of these wholesale connections is significantly more than the cost of delivering a ULL connection. Because some ISP's used a marketing ploy of cheaper pricing for customers using their ULL network compared to those customers who were connected to Telecom Wholesale connections, many end users may be faced with a price increase for their internet and phone services if they are to move from a ULL connection back to Telecom Wholesale.
How do I tell if I could be affected?
The simplest way to establish the quality of your DSL connection is to look at the Chorus website - http://chorus.co.nz/service-availability-tool and enter your address. You will instantly see whether you're served from an exchange or cabinet, and whether your home is covered by ADSL+ and/or VDSL2 services. The next step is to log into your modem and look at your connection stats. Providing exact details of how to do this is beyond the scope of this post, but in most modems these details should be fairly easy to access. What you are looking for are stats like the following:
If you are within the footprint of a cabinet you should realistically be seeing a DSL sync rate in your modem of at least 10000kbps, with a good connection showing stats of up to 18000kbps. If you are on a Telecom Wholesale connection you should see a noise margin of around 12dB reported by your modem. If you are on a ULL connection you will potentially see a noise margin of around 6dB, as providers such as Orcon have chosen to use a more aggressive noise margin for their xDSL connections. If the Telecom Wholesale map shows you as being serviced from a cabinet, and your modem reports a noise margin of around 6dB you are potentially receiving a substandard connection.
The router screenshot example used above is a friend's Orcon ULL connection taken last month, with an attenuation of 54 dBm which is exceptionally poor. His DSL sync speed was 880000, which meant his internet speeds could be a maximum of 800 kbps per second. Telecom Wholesale provide a provisioning tool that any ISP can access that will show an approximate estimate of the attenuation and sync speeds at any address on their network - his address showed he should be seeing sync speeds of between 15000 kbps and 16000 kbps from the connection to his local cabinet. Within days of requesting a chance Orcon had moved him to a Telecom Wholesale connection and his connection was now around 20x faster than it used to be. There have been a growing number of threads on Geekzone discussing this issue over the past couple of months and all with similar end results, so his story is anything but unique.
The vast majority of ULL gear was installed in exchanges in the Auckland region so there are potentially hundreds, if not thousands, of internet users receiving sub standard speeds from their ISP. The cabinet migration schedule isn't a secret, and some ISP's have actively migrated ULL users across to Telecom Wholesale connections before cabinets have been installed, however others have chosen not to do this. If you know you are on a ULL connection and unhappy with your performance some basic checks such as those above could greatly improve your internet speeds!
Digital TV isn't new to New Zealand - Sky TV began digital broadcasts in the late 90's and Freeview launched in 2007 offering a digital platform for existing Free To Air (FTA) broadcasters using a DVB-S (satellite) platform to offer nationwide coverage to any home with a satellite dish, and in 2008 launched a DVB-T (terrestrial) network that works with a UHF TV aerial and will offer coverage to 87% of the population by the end of July. In September 2012 New Zealand begins what is arguably the most significant change to TV broadcasting in New Zealand since TV broadcasts began in 1960 - the shutdown of these analogue TV broadcasts leaving NZ with a 100% digital broadcast platform. This process is known as Analogue Shut Off (ASO) or Digital Switchover (DSO). By the end of 2013 when this process is complete and all analogue TV broadcasts are discontinued, every TV in the country that is not equipped with an integrated digital tuner for Freeview, an an external Set Top Box (STB) for Freeview, Sky or TelstraClear will be unable to pick up any TV broadcasts. It also means that every VCR or DVD recorder in the country will also be unable to record any TV broadcasts unless connected to an external Freeview, Sky or TelstraClear STB. Despite the dates for switchover being announced earlier this year, an official announcement was made on Friday marking the launch of a new www.goingdigital.co.nz campaign to educate people about this important milestone.
Current statistics show that close to 80% of homes are currently accessing digital TV. What these surveys don't ask however is whether every TV on the premises is currently accessing TV using a digital platform. Somebody who has Sky hooked up to their new 50" Plasma in their lounge is counted in these statistics as being a digital customer, even if the TV in the bedroom is only tuned into an analogue signal. The total number of TV's that are accessing analogue broadcasts is still very significant, and every device that has a tuner in it will require to be replaced or connected to a STB for it to continue working once the analogue broadcasts are shut off. What is readily apparent is that there are a large number of people unaware that analogue TV broadcasts will be shut off, and that their TV's will suddenly be incapable of displaying anything unless they purchase a digital STB for it. While advertising campaigns have started advising of the digital switch over, educating people about the implications of this will take time.
Of great concern to me however, is the behaviour of some of New Zealand's largest retailers continuing to sell products that do not feature a digital tuner, meaning they will be incapable of functioning in a little over a year without additional cost to the consumers.
Several weeks Harvey Norman had TV advertising for a Visio 19" LCD TV for $249. "Great for the bedroom" boasted the voiceover message. This TV features no integrated Freeview tuner and is only capable of tuning in analogue broadcasts. Anybody buying one of these TV's for their bedroom and relying on analogue broadcasts will find that that once analogue broadcasts cease that their TV will be unusable unless an external STB is connected to it. Harvey Norman aren't the only ones guilty of this - a quick glance at The Warehouse and DSE mailers show they are also selling a large number of TV's with no integrated digital tuner.
This poses a question - are these retailers blatantly misleading their customers by selling products that will not be able to perform it's primary purpose (watching TV) starting in 15 months time unless the customer spends more money to purchase a STB to allow this TV to continue to operate? I personally think they are. A quick survey by of these retailers on the weekend inquiring about these products shows that they're doing nothing to educate and inform their customers that the product they're about to purchase will be unusable unless connected to a STB at additional cost to the consumer.
In my opinion every retailer in New Zealand selling a TV or DVD recorder without an integrated Freeview tuner should be forced to display Point of Sale material warning of the limitations of the product, and the same material should also included with the product. Selling a TV or DVD recorder that will in effect be obsolete, without clearly advising customers of this is in my opinion, completely unethical.
So my challenge to retailers - what are you going to do about this? What steps will you take to educate customers? What will you do when a customer brings their Visio TV back in 15 months time and says it no longer works?
If you're a consumer who's recently purchased a TV from one of these retailers that doesn't feature a digital tuner and were unaware that it will require additional hardware and costs to operate in a little over a year, what do you think?
Your thoughts on this issue are welcome.
* Image of switch off dates is from www.goingdigital.co.nz
This morning I awoke to the sound of Radio NZ news in attack mode launching a full on hatchet job on Mastercard. What had Mastercard done that was so bad? Well nothing. Nothing at all.
In November last year (1) the consortium of ANZ, EFTPOS NZ and MasterCard announced the launch of MasterCard PayPass in New Zealand. PayPass is a Near Field Communication(NFC) capable card (think "Snapper card") and enables payment for goods without having to use the magnetic stripe or chip on your card. No PIN number is required for low value purchases, which means the transaction times are super quick, typically somewhere in the vicinity of 300ms - 500ms depending on the volume of data that is transferred. Part of the announcement was that PayPass terminals would be installed at Eden Park and Westpac stadium in time for the Rugby World Cup. Despite the deal to launch NFC terminals in stadia for the RWC now being over four months old, Radio NZ thought they were onto a winner, boldly claiming that RWC patrons would "have to have to use cash or buy a new Mastercard prepaid card" for purchases during an game. I'm sorry Radio NZ, what was the news again? It's obviously a slow news day when your lead story is a rehashed four month old story that does nothing but spread FUD. I guess impartiality wasn't in the vocabulary today.
Radio NZ then called upon Massey University senior lecturer in banking Claire Matthews to comment "New Zealanders have taken to eftpos with such delight and make such great use of it, that to try and persuade them to use something else which doesn't offer any significantly better convenience or efficiency - there's simply not the argument for them to use it.". About now might have been a good time to do what a journalist does well and ask a question, such as " why do we not have EFTPOS in stadia today?".
Here in New Zealand today if you attend an event at a major stadium you'll find it's still very much cash environment. Despite our love for EFTPOS it's not commonly found. Why not you ask? The simple answer is that the transaction times are considered to be too slow and will create bottlenecks. This is a view that is certainly open to argument, with the average time for an EFTPOS transaction being in the vicinity of 15 seconds. Regardless of whether or not you think that's a problem it's an issue we just have to accept - and have done, as the lack of EFTPOS terminals at most major events will be readily apparent to anybody who regularly attends. Instead of handing over their plastic at the till, people either bring cash, or queue at ATM's inside the stadium and pay for their hotdogs and beer with cold, hard cash.
One interesting piece of history for buffs is that when the Westpac Stadium in Wellington was opened in 2000 it featured Visa Cash terminals at every kiosk. Visa Cash was a prepaid chip card that required no PIN or signature, however the hardware was withdrawn after the Visa Cash product failed to gain traction in the global marketplace, and was replaced by trials of NFC cards that began around the same time.
Here in New Zealand ANZ bank have been issuing NFC based MasterCard cards since mid 2010 and launched these officially in November 2010. A growing number of retailers now feature NFC capable EFTPOS terminals, and if you stand at a McDonalds store for long enough you will see probably see somebody using one. While not commonplace yet in the New Zealand market, the Australian market now has 5.3 million PayPass cards, and over 35,000 retail locations with PayPass enabled terminals. By October 2012 all Mastercard cards issued by banks in both New Zealand and Australia will feature PayPass, and by 2014 all EFTPOS terminals in both countries must be upgraded to support NFC cards. Sources tell me that ANZ will very shortly begin issuing NFC cards as standard, and that at least one or two other bank in New Zealand will roll out NFC cards over the coming months meaning there will be a growing numbers of cards in regular use by the time the RWC starts.
The "new" NFC terminals were installed late last year at both Eden Park in Auckland and Westpac Stadium in Wellington. If you're lucky enough to already have a NFC card you've probably already used it. If you had were expecting some flash new terminals to be installed just in time for the RWC you'll be sorely disappointed. The very same infrastructure and payment methods that are in place today will be exactly how things are during the RWC.
The hatchet job on Mastercard continued with blogger Lance Wiggs launching a scathing attack saying the decision is "stupid". Comments such as the one from Lance saying that MasterCard need to "roll out the NFC/EFTPOS terminals across New Zealand so that tourists and locals alike can experience the technology" shows a lack of knowledge of the product and industry. NFC terminals are now reasonably commonplace in NZ, with a huge number of Ingenico terminals having been deployed in recent months as retailers upgrade to new EMV version 6 capable terminals as required by the 1st June 2011.
Issues were also raised in the media as to why Visa cards couldn't be used. In Part ANZ and MasterCard as RWC sponsors obviously see value in selling their brands, however more import is a key issue that Visa's PayWave NFC cards have not yet been launched in New Zealand. Using something that doesn't exist in our market isn't easy!
In recent months there have been some very exciting developments in the NFC field. Cellphones with NFC capabilities have been trialled meaning that your cellphone becomes your wallet. Want to see your current account balance or transaction history? It'll all viewable on your phone screen. NFC is the future of payments, and the capabilities of such an exciting technology are very cool.
It's been a long time since I've heard a rehashed news story about payment terminals that were installed months ago, NFC credit cards cards that are already in use by thousands of New Zealanders (and not to mention foreign tourists who will visit) and shock words such as "paying by cash" cause such a fuss!
Disclosure: Before somebody flames me I neither work for, or have any association with any bank, credit card company or terminal vendor.