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ajw

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  Reply # 634945 3-Jun-2012 11:18
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Slightly OT.


http://delimiter.com.au/2012/06/01/warning-telstra-is-killing-off-australias-mobile-competition/



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  Reply # 635262 3-Jun-2012 23:02
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ajw: Slightly OT.


http://delimiter.com.au/2012/06/01/warning-telstra-is-killing-off-australias-mobile-competition/


Actually I think it's quite on topic in many respects.

What that article is saying is that Telstra is delivering consumers service where competitors simply aren't.

I've got a 100/10 service, and it cost me nothing to get, new modem, on site install which included doing work up the local poll, but they did it all.  Yes, I'm paying ~$50 more a month,  but let's compare that to what it would cost me to get VDSL.

I agree with what Steve's saying, we do need to convince Telstra to take the New Zealand market seriously if it's going to invest anything more in the market, but I do have to ask, if they invest $5b into buying Telecom then the risk of what they could loose by not delivering is more significant.

With respect to the competitive market, the focus has to be on keeping New Zealand in line with technology that is used in our region at the same price and value points coupled with good business leadership and managed profit taking.

Having 3 wonderfully balanced mobile networks that all have the same price point, but are all 3G and all only deliver 1Gb monthly data plans for five times the value that can be got in Australia isn't actually a benefit to New Zealand in my view.

Would Telstra owning Telecom mean that they'd have the ability to bring me VDSL2, with 60Gb of data a month, including a modem and what ever wiring changes are needed or not, for the $85 it's actually worth, without a term contract?






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  Reply # 635264 3-Jun-2012 23:05
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Look what happened to supermarket competition when one big ozzie player purchased another large brand in NZ. We are now largely left with a duopoly, and food and milk prices in NZ are expensive compared to other countries. It is not good for the consumer.



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  Reply # 635266 3-Jun-2012 23:19
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mattwnz: Look what happened to supermarket competition when one big ozzie player purchased another large brand in NZ. We are now largely left with a duopoly, and food and milk prices in NZ are expensive compared to other countries. It is not good for the consumer.



Very different markets, with very different dynamics and consumers have far more power in the telecommunications market than in the food market.

UFB and RBI are going to deliver a very different dynamic than the supermarket sector.

2Degress already proved that it doesn't take that much investment or time to make a marked difference in the market with the right technology choices.

AAPT, and others, showed just how quickly an overseas provider can be picked off, and Telstra have learnt that lesson in Asia before today. 






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  Reply # 635318 4-Jun-2012 08:58
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mattwnz: Look what happened to supermarket competition when one big ozzie player purchased another large brand in NZ. We are now largely left with a duopoly, and food and milk prices in NZ are expensive compared to other countries. It is not good for the consumer.


You can't compare the two.

Telecommunications is an extensively regulated market with wholesale access costs all set by the Commerce Commission. Profits for many telcos are still very good.

Supermarkets are an unregulated industry where hundreds of products are sold below cost in stores every week, purely because the competition sells the same products below cost. Margins on specials are in the single digits and the overall store gross profit is also in the single digits.

Competition in the NZ supermarket sector is the most intense in any retail or business sector in NZ with  massive competition existing between Progressive and Foodstuffs in an industry which is very much high turnover and low margin.

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  Reply # 635755 5-Jun-2012 00:35
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sbiddle: 

Competition in the NZ supermarket sector is the most intense in any retail or business sector in NZ with  massive competition existing between Progressive and Foodstuffs in an industry which is very much high turnover and low margin.


Yes, refer to how The Warehouse went when they tried to enter the supermarket business.

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  Reply # 635760 5-Jun-2012 02:55
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Assuming they could buy Telecom I doubt they would spend billions purchasing a company with little in the way of something tangible - it isn't as though by buying Telecom they get a tonne of infrastructure now that Telecom has been split.

Now when it comes to rumours I'm more likely to believe that Telecom will be rebranded and named something else before anyone actually buys it out.




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  Reply # 635776 5-Jun-2012 06:31
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kawaii: Assuming they could buy Telecom I doubt they would spend billions purchasing a company with little in the way of something tangible - it isn't as though by buying Telecom they get a tonne of infrastructure now that Telecom has been split.

Now when it comes to rumours I'm more likely to believe that Telecom will be rebranded and named something else before anyone actually buys it out.


They get XT, they get the PSTN, and they get 50% of southern cross cable to name but three large peices of infrastructure
(not that I think they would do it, but Telecom still has quite a bit of infrstructure)

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  Reply # 635998 5-Jun-2012 12:41
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This is excellent:

"Vodafone could not provide comment this morning. A spokeswoman said senior managers were tied up in a meeting recognising staff achievement."

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  Reply # 636009 5-Jun-2012 12:59
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cyril7: The plot thickens

http://www.stuff.co.nz/business/industries/7045480/Telstra-in-talks-with-Vodafone

Cyril


That would make more sense..




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  Reply # 636089 5-Jun-2012 14:17
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So Telstra buys Telecom, Vodafone buys Telstaclear = one big NZ telco.




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  Reply # 636165 5-Jun-2012 16:20
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coffeebaron: So Telstra buys Telecom, Vodafone buys Telstaclear = one big NZ telco.


Not quite.  Telstra AU buys Telecom NZ.  Vodafone NZ buys TelstraClear NZ.  Still two large telcos..




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  Reply # 636205 5-Jun-2012 17:21
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old3eyes:  Not quite.  Telstra AU buys Telecom NZ.  Vodafone NZ buys TelstraClear NZ.  Still two large telcos..


Yes, as per what Paul B had to say on the Tuanz web site, is this want this is all about?

Per my earlier comments, it could leave Telstra with all the fibre back haul other than FX and what ever Chorus has.

Thinking about some of the comments others have made, would ComCom fly with Telstra picking up so much backhaul?

However, if they divest TCL first and then pick up Telecom next, that starts to make more sense.

From Vodafones POV it's a win win for them and with FX putting in 30 new POPs at present, I doubt that 2Deg is going to object to hard, so who's left to whinge at ComCom?






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