Telecom to be split into 3 businesses

Forums › Spark New Zealand (including Skinny and BigPipe) › Telecom to be split into 3 businesses

grant_k

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#10552 28-Nov-2006 12:37

This just in from the Herald:

Telecom will 'work with' operational separation

12.15pm Tuesday November 28, 2006
Telecom says the recommendation on its operational separation by a powerful parliamentary committee is not ideal but it will do its best to work with it. More details here:

http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10412818

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#54039 28-Nov-2006 19:47

And about time too! We are all paying far to much for NZ Telecom. The sooner it realises it needs to change its ways the better for all NZ consumers.

I currently enjoy 300 minutes of NZ and international calls each week for 3 euro's each month. If voipcheap.com can provide the service then so can NZ Telecom. I look forward to seeing telecom restructure itself for the brave new world being created by the government.

Well done to Helen Clarke and Co for biting the bullet and doing something about it!

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tonyhughes

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#54040 28-Nov-2006 19:54

g7viz: I currently enjoy 300 minutes of NZ and international calls each week for 3 euro's each month. If voipcheap.com can provide the service then so can NZ Telecom.

Hi there. Sorry - I didnt hear you when you told us how much money voipcheap.com invests in the physical infrastructure here in New Zealand.

How much is it?

bradstewart

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#54053 28-Nov-2006 21:25

I'm going to say exactly $0. But to use that you still need to use Telecoms infrastructure... No Telecom, no cheap VOIP

Ben

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#54054 28-Nov-2006 21:35

Yeah I really hope that the Network and Wholesale departments can produce a good business plan that shows how they can profit from the infrastructure investment that we so sorely need.

I imagine Network will do pretty well, with ISPs clamouring to get into it, but I can't see Wholesale flying.

g7viz

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#54057 28-Nov-2006 21:43

So investment is the key ..... so why is the NZ Telecom dividend so high? Just think about all that money going to Austrailia!

Maybe if telecom has invested that money, instead of giving it to shareholders, then maybe we would have an broadband infrastructure that is second to none.

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juha

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#54058 28-Nov-2006 21:43

bradstewart: I'm going to say exactly $0. But to use that you still need to use Telecoms infrastructure... No Telecom, no cheap VOIP

Yes, that is so... and it'll be a tough nut to split equitably is my prediction. Then again, Telecom will be paid market rates for the use of said infrastructure, so here's hoping it'll be an incentive to build more.

Either way, it's time to recognise that the status quo wasn't working and it's now time to move on.

Juha

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CrispinMullins

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#54063 28-Nov-2006 22:08

Hi there. Sorry - I didnt hear you when you told us how much money voipcheap.com invests in the physical infrastructure here in New Zealand.
How much is it?

How do you suppose one accesses voipcheap.com? For most New Zealand consumers, it's Telecom's IP infrastructure. Customers pay Telecom a fee for the use of this infrastructure, which Telecom is then free to invest in the said infrastructure at their discretion.

Telecom's international rates to the country I call most haven't changed significantly in the 8 years I've been a customer -- and that's before you factor in the average inflation of 1.5-2.0% per year since then. Telecom is in a good position to compete, theoretically, so if it cannot keep up, it's its own silly fault.

Crispin Mullins
Auckland, New Zealand

sat

142 posts

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#54066 28-Nov-2006 22:32

Having worked at Bt through un bundling, and the split of the company they are now the slickest teleco in Europe. so i suppose telecom will become slickier

It is New Zealand's role to send out its bright young men and women to help run the rest of the world. And they go, not hating the country of their birth, but loving it. From this loving base they make their mark on the world.

grant_k

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#54080 28-Nov-2006 23:19

satellitesam: Having worked at Bt through un bundling...

That's interesting. I suppose it took a heavy toll on staff morale at the time though?

What was your experience of the restructuring that ensued?

juha

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#54107 29-Nov-2006 07:08

I've talked to BT people and didn't get the impression that morale took a hit; quite the contrary actually, because after the separation, business worked in a more natural fashion (retail wasn't allowed to hold back wholesale, etc).

Also, don't forget that the company that manages Telecom's day to day running of the network also does the same for BT: Alcatel.

Juha

bonkiebonks

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#54128 29-Nov-2006 10:16

What will happen to Telecom's supposed NGN? Will it go under the Network Access arm, or what?

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juha

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#54130 29-Nov-2006 10:28

bonkiebonks: What will happen to Telecom's supposed NGN? Will it go under the Network Access arm, or what?

The NGN AFAIK comprises a bunch of stuff... expect most of it will end up with the Network Access people, with perhaps the tails going to wholesale. I don't know though.

Juha

exportgoldman

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#54212 29-Nov-2006 21:31

tonyhughes:
g7viz: I currently enjoy 300 minutes of NZ and international calls each week for 3 euro's each month. If voipcheap.com can provide the service then so can NZ Telecom.

Hi there. Sorry - I didnt hear you when you told us how much money voipcheap.com invests in the physical infrastructure here in New Zealand.

How much is it?

I would say $0 or close to it.

Tell me, what the European Union Policy of LLU is?

What does the OECD reccomend on LLU?

You CANNOT join the EU unless LLU has happened in your country, and the OECD now accepts as best practice LLU....

I can't remember your point, and I'm bored of people defending Telecom. This is a landmark day in NZ history, where we follow the world yet again in matters of national importance. At least it's done, and by a Labour government by golly.

Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

nzbnw

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#54216 29-Nov-2006 21:41

exportgoldman: I'm bored of people defending Telecom.

Likewise I am sick of people having a go at Telecom for no valid reason, with the exception of people wanting some thing for next to nothing. I actually like Scott Bartlett (Orcon's regulatory manager) take on Telecom bashing, "It's too easy to blame Telecom and it's one of the oldest tricks in the book.".

nzbnw

g7viz

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#54219 29-Nov-2006 21:48

This is not about bashing telecom, it is about encouraging competition to:

a. drive down prices
b. enable new services to be brought to the market
c. providing a level playing field

Why are some of you concerned at the prospect of cheaper (and faster) telecoms - surely this is in NZ's interest.

Facts ARE for everybody

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