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140 posts

Master Geek
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Topic # 6903 3-Mar-2006 13:04
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There is an interesting NZ Herald article about Bernard Hill, who is the Head of Competition Affairs in the Office of Telecommunications Authority in HK. He mentions his views about how unbundling worked in HK to encourage infrastructure investment. What does everyone think about this?

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Hawkes Bay
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  Reply # 29758 3-Mar-2006 13:51
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Yes very interesting...

especially the following bits:

It's got everything to do with density. With the tightest living conditions in the world, where up to 40,000 people live in one apartment complex, it has been incredibly efficient to roll out networks. With a very small geographic area - Hong Kong's land mass isn't even 1 per cent of New Zealand's - fixed operators effectively get more bang for their buck.

Opening up Telecom's network to competitors through simple local loop unbundling, as numerous industry analysts here are urging, may not be the long-term answer to the country's woeful broadband uptake.

Instead, Hill suggests an unbundling scheme where Telecom's competitors must also guarantee infrastructure investment.

"If you unbundle in favour of people who are actually going to build infrastructure, that might be something.

"But if you're just going to invite other resellers into the market, you're not achieving very much," he says.

Which is just about word for word of many discussions here on GZ on the topic (from the pro-Telecom & anti-unbundling camp).

It sounds more than three times as dense as New Zealand in terms of population, so in effect they have less operators in proportion to that density of population than we do...

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Reply # 29761 3-Mar-2006 14:47
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Wow I feel vindicated. Bernard Hill is either telepathic or he reads Geekzone!


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Reply # 29762 3-Mar-2006 14:49
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Do you know his IP address?

But, seriously, exactly what I think. ULL is just good for the competitor who will suck the infrastructure, not offering anything new and perhaps even providing a service that is no better than what is already there.

Where is the innovation, modern services, investment in framework? Nop, I don't think the people crying for ULL want to do any of these...

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  Reply # 29763 3-Mar-2006 15:16
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Annette Presley gave away 35,000 loaves of bread yesterday. That could have paid for 10meters of fibre!

'Someone is giving away a lot of bread'

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Master Geek
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  Reply # 29765 3-Mar-2006 15:24
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Surely it couldn't have been fresh bread...

At the moment the main choice we have is to do with price and data allowance. I would certainly hope ISPs can offer more differentiation than that (eg services).

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