Telecom and Southern Cross cable

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hamish225

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#110288 6-Oct-2012 17:51

I'm curious as to wether telecom gets cheaper international data on the sothern cross cable, since they own 50% of it, or would this be illegal?

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freitasm

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#697204 6-Oct-2012 18:14

Take your tinfoil hat off. They pay the same as other companies.

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#697205 6-Oct-2012 18:18

hamish225: I'm curious as to wether telecom gets cheaper international data on the sothern cross cable, since they own 50% of it, or would this be illegal?

It wouldn't be illegal but it'd be pretty safe to say if this was happening every ISP in NZ and Australia would jumping up and down about it complaining to the ACCC and Commerce Commission about it.

DonGould

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#697221 6-Oct-2012 18:41

As has been said, Telecom would be paying on the same price book as anyone else. SCCN also does volume discounts, to it would be fair to assume that Telecom get a better buy price than anyone in New Zealand as they have more volume than everyone else put together.

However, it's also in Telecom's interest to pay higher prices and set a market expectation. Telecom gets a dividend from SCCN each year, so it it pays a higher price and SCCN makes a higher profit then that money just comes back at them, very simple business if you think about it.

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BarTender

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#697296 6-Oct-2012 22:43

Let's also not talk about all the other facts in this tin foil story.

- Costs the same to land data in NZ as it does in AU from the US.
- There is already competition for cables into AU so we could assume that the price we get for international transit is "fair"
- NZ only uses ~10% of the SCCN usage AU uses the rest.
- International capacity is a small fraction of your monthly bill.
- SCCN has been reducing the costs year on year since they launched.

Sooooo

Let's try and triple the population and all of them using the internet. Then it would probably be as "cheap" as it is in AU.

DonGould

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#697299 6-Oct-2012 23:02

Bit off topic there BT, the question was about Telecom paying less than other providers because it owns shares in the SCCN cable network.

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Zeon

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#697313 6-Oct-2012 23:43

I vote to become a state of Australia for cheaper internetz :)

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BarTender

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#697357 7-Oct-2012 08:21

DonGould: Bit off topic there BT, the question was about Telecom paying less than other providers because it owns shares in the SCCN cable network.

If that was really the question then who cares? It's a commercial relation between SCCN and Telecom. Since if I were Singtel or the other 50% owner I wouldn't go giving discounts to fellow shareholders.. especially when they used significanty less data than my other customers.

DonGould

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#697408 7-Oct-2012 11:05

BarTender: If that was really the question then who cares?

Clearly the OP enough to ask, but not enough to come back and have any sort of discussion on the issues, or perhaps he was just happy with the answers presented, who knows.

BarTender: It's a commercial relation between SCCN and Telecom. Since if I were Singtel or the other 50% owner I wouldn't go giving discounts to fellow shareholders.. especially when they used significanty less data than my other customers.

I totally have to agree with you. iirc Singtel own 40% with Verision owning the other 10%.

Singtel also have birds in the sky, an investment which they are keen to protect I'm sure. They've already learnt the impact of new fibre cables with the Bass Straight cable being lit and ABC moving it's Tas transmission of the Optus transponder that was also hitting us in New Zealand.

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hamish225

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#697463 7-Oct-2012 14:02

just curious, because people had been saying that telecom have good international speeds.

My dad would never go back to telecom after the problems we had with go large though, i get good speeds where i am now.

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DonGould

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#697521 7-Oct-2012 17:17

hamish225: just curious, because people had been saying that telecom have good international speeds.

My dad would never go back to telecom after the problems we had with go large though, i get good speeds where i am now.

SCCN capacity is but one of a very large number of factors that impact good international speeds.

Telecom have made it publicly clear that they currently put significant value on BB customers to the point that they're taking a cut on margin.

Traditionally Telecom also have more of the 'low impact' customers than other networks, but they also have different hand over off the end of SCCN than other providers, they attract different customers who could simply be pulling data from different locations that just perform better or more of their customers just have better, newer modems that are currently performing better.

So they could have more SCCN capacity and be just paying for it, or it could be than the routers at the LA and NZ ends of the cable are better.

Or it could be that their proxy farm is better than other providers and giving better results.

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Ragnor

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#697534 7-Oct-2012 18:18

hamish225: just curious, because people had been saying that telecom have good international speeds.

My dad would never go back to telecom after the problems we had with go large though, i get good speeds where i am now.

Telecom's forays into un-metered (Go Large and Big Time) weren't well executed, fair to say they weren't adequately prepared for the onslaught.

Their standard/metered plans in the last few years have been very solid though. I think Telecom have worked really hard to turn around their negative reputation under the current leadership.

At home over the last several years we changed from: ihug/vodafone > Xnet > Telstraclear > Telecom.

- Left ihug at the time because of several months of performance issues to us servers for gaming and ventrilo (this was a few years ago).

- Left Xnet when they hit issues with backhaul contention before they announced the ill fated torrential plan (could see the writing on the way)

- Left Telstraclear because of months of unresolved routing issues to gaming server in Australia and terrible youtube performance.

Telecom had done a good enough job with few problems and regular pricing/plan refreshes that we haven't yet felt tempted to change to another provider yet.

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plambrechtsen

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#697576 7-Oct-2012 20:18

Ragnor: Telecom had done a good enough job with few problems and regular pricing/plan refreshes that we haven't yet felt tempted to change to another provider yet.

Plus we're really nice to deal with here on Geekzone :)

DonGould

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#697582 7-Oct-2012 20:34

plambrechtsen: Plus we're really nice to deal with here on Geekzone :)

lol

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