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327 posts

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Topic # 157271 26-Nov-2014 08:44
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Have almost decided to move from Vodafone after several years to another ISP
BUT:
We are urban, right next to Waihi which I understand has UFB, but here, when doing a search of services we are stuck with ADSL2; not a problem but providers like Compass respond with:
I’ve just completed an address check for both addresses and unfortunately they are not in our Compass Zone area.
Which means we have to pay a premium for their service. Why is this when Vodafone charges standard rate for connection and other ISP cant? Does Vodafone and Telecom 'own' certain zones? If thats the case I would have thought it anti-competitive practice?
Thanks and regards,
Alistair.

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  Reply # 1183124 26-Nov-2014 08:58
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My guess is that Compass has unbundled some exchanges and can offer a cheaper service where it has done so. You will likely find that most other ISPs don't charge a premium for your location.



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  Reply # 1183149 26-Nov-2014 09:17
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Behodar: My guess is that Compass has unbundled some exchanges and can offer a cheaper service where it has done so. You will likely find that most other ISPs don't charge a premium for your location.

Hi some charge premium, some dont. Not sure what you mean by unbundling.
I'd prefer unlimited Compass but Slingshots offering is more competitive after negotiation.

Require unlimited, CID, POTS, free national calling (up to an hour)

Regards,
Al.

 
 
 
 


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  Reply # 1183172 26-Nov-2014 09:46
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Many ISPs who have their equipment in an exchange (unbundled) offer cheaper prices than where they have to use Chorus for a Wholesale connection.

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  Reply # 1183178 26-Nov-2014 09:57
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As already covered. You will find the new area hasn't been unbundled by Compass so they charge a premium as they have to pay chorus for use of their DSLAMs.

The Bigger ISPs seems to have stopped doing this and charge a single price no matter if you're wholesale or LLU customer. I guess the LLU customers subsidise the more expensive costs that come with wholesale connections.



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  Reply # 1183181 26-Nov-2014 10:01
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sbiddle: Many ISPs who have their equipment in an exchange (unbundled) offer cheaper prices than where they have to use Chorus for a Wholesale connection.


Wiki says:
New Zealand The Commerce Commission recommended against local loop unbundling in late 2003 as Telecom New Zealand (now Spark New Zealand) offered a market-led solution. In May 2004 this was confirmed by the Government, despite the intense "call4change" campaign by some of Telecom's competitors. Part of Telecom's commitment to the Commerce Commission to avoid unbundling was a promise to deliver 250,000 new residential broadband connections by the end of 2005, one-third of which were to be wholesaled through other providers. Telecom failed to achieve the number of wholesale connections required, despite an attempt by management to claim that the agreement had been for only one-third of the growth rather than one-third of the total.[9] That claim was rejected by the Commerce Commission, and the publicised figure of 83,333 wholesale connections out of 250,000 was held to be the true target. The achieved number was less than 50,000 wholesale connections, despite total connections exceeding 300,000. On 3 May 2006 the Government announced it would require the unbundling of the local loop. This was in response to concerns about the low levels of broadband uptake. Regulatory action such as information disclosure, the separate accounting of Telecom New Zealand business operations, and enhanced Commerce Commission monitoring was announced.[10] On 9 August 2007 Telecom released the keys to exchanges in Glenfield and Ponsonby in Auckland. In March 2008 Telecom activated ADSL 2+ services from five Auckland exchanges – Glenfield, Browns Bay, Ellerslie, Mt Albert and Ponsonby – with further plans for the rest of Auckland and other major centres, allowing other ISPs to take advantage.



So the 'local loop' is main centers only?

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  Reply # 1183196 26-Nov-2014 11:06
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The definition of "local loop" is pretty much regarded as the MPF between the cabinet or exchange and your premises, so the "local loop" exists nationwide.

As for unbundling, this is typically only in cities as the providers who have installed their own equipment pretty much cherry picked areas where they could generate a ROI. Putting equipment in a town where you might get 10 customers would never be cost effective.

As for your actual issue - I actually struggle to see what it is.

Since providers first starting with unbundled equipment some have offered cheaper pricing over this because their costs of delivering the service are cheaper. Some such as Orcon then faced major issues as a result of this when cabinetisation came along and they had thousands of customers they needed to move back to wholesale connections at a higher cost that they would have made a loss on so pricing went up and they now offer the same price on both unbundled and wholesale but make significantly more profit on an unbundled connection. Right now some such as Flip only offer homeline + broadband services where they have their own equipment. Clearly Compass are offering split pricing so you pay less if you're on their equipment than you do on wholesale as their costs are less.







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  Reply # 1183205 26-Nov-2014 11:26
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sbiddle: The definition of "local loop" is pretty much regarded as the MPF between the cabinet or exchange and your premises, so the "local loop" exists nationwide.
As for unbundling, this is typically only in cities as the providers who have installed their own equipment pretty much cherry picked areas where they could generate a ROI. Putting equipment in a town where you might get 10 customers would never be cost effective.


OK now its clear sorry about that. So if compass decided, they could go to Waihi Beach and install their own equipment, but its not cost effective (if I understood you right).
Thanks,
Alistair.

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  Reply # 1183207 26-Nov-2014 11:28
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ageorge:
sbiddle: The definition of "local loop" is pretty much regarded as the MPF between the cabinet or exchange and your premises, so the "local loop" exists nationwide.
As for unbundling, this is typically only in cities as the providers who have installed their own equipment pretty much cherry picked areas where they could generate a ROI. Putting equipment in a town where you might get 10 customers would never be cost effective.


OK now its clear sorry about that. So if compass decided, they could go to Waihi Beach and install their own equipment, but its not cost effective (if I understood you right).
Thanks,
Alistair.


In a nutshell, yes. Not all exchanges support unbundling though, but in somewhere like Waihi there would be absolutely no cost benefit to them (or any other provider) to instal their own equipment.


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