Telecom pushes for broadband partnership

Forums › Spark New Zealand (including Skinny and BigPipe) › Telecom pushes for broadband partnership

LAC

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Master Geek

#71543 12-Nov-2010 06:20

Telecom will today step up its campaign to become the Government's broadband partner, releasing a poll on its website that says more Kiwis would prefer its network arm Chorus got the job of building the ultrafast broadband network than electricity lines companies headed by Vector.

http://www.stuff.co.nz/business/industries/4336842/Telecom-pushes-for-broadband-partnership

What do you all think about this? Do you think its a good idea that Telecom rape this idea? Lol?! :(

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#403703 12-Nov-2010 06:52

Seems to me that Chorus would be better suited to building the Fibre Network.

freitasm

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#403705 12-Nov-2010 07:12

LAC: What do you all think about this? Do you think its a good idea that Telecom rape this idea? Lol?! :(

What do you think, and more importantly, why do you think it?

Ragnor

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#403781 12-Nov-2010 10:21

It's not going to happen or at least would be a mistake unless Telecom divest Chorus completely.

The natural monopoly part (ie: putting fibre optic cables in the ground) and running it as open access by wholesaling to every ISP needs to be a completely separate company from the retail and marketing of plans/services to the end user.

We've seen how vertical integration works over the years and it fails in many way eg: artificial scarcity, favouring a low volume high price business model when we need a high volume low price, lack of effective competition.

Internet access needs to become a commodity/utility like power and water. Cheap, fast and ubiquitous.

Behodar

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#403784 12-Nov-2010 10:23

As someone who lives in a smaller town, the two "choices" here are the local power company and Telecom/Chorus. I believe that if the power company gets it, then fibre will be rolled out here sooner, compared with Telecom which will most likely focus on the big cities first.

Does that sound like a sensible assumption or are there complications that I'm not seeing?

n00dy

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#403799 12-Nov-2010 10:56

Ragnor: Internet access needs to become a commodity/utility like power and water. Cheap, fast and ubiquitous.

I dont know that is a good example. Just look at the power, 73% is from renewable resources, all are state owned enterprises and look how we are held to ransom with prices always goig up and no competition.

I think this is a reason that Chorus should be given the partnership as it already has a fair amount of firbre done, builds on an already existing infrastructure and expertise, they apprer to meet the commitments they are required complete. Saves on replication

richms

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#403801 12-Nov-2010 11:01

IMO ducting should be owned and operated by the local council on an equal access not profit driven basis. What goes in those should be up to anyone else. The govt shouldnt be paying for anyone to install or operate anything in it, as that will just lead to another monopoly of local loop, and when your local loop is crap as has been the case for so long for most NZers, having a single provider of them does not make sense.

Richard rich.ms

Cymro

283 posts

Ultimate Geek

#403838 12-Nov-2010 11:54

Ragnor: It's not going to happen or at least would be a mistake unless Telecom divest Chorus completely.

The natural monopoly part (ie: putting fibre optic cables in the ground) and running it as open access by wholesaling to every ISP needs to be a completely separate company from the retail and marketing of plans/services to the end user.

That's exactly what they are proposing as part of the structural separation isn't it?

Ragnor:
Internet access needs to become a commodity/utility like power and water. Cheap, fast and ubiquitous.

Sorry but power/water prices are anything but cheap!

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Cymro

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#403840 12-Nov-2010 11:56

Link to Telecom's UFB website: http://ufb.telecom.co.nz/

The IDC videos on there are quite interesting.

MattEast

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#403856 12-Nov-2010 12:32

Just in case you missed it

Ending the digital divide: Telecom and Vodafone announce joint approach to rural broadband
Telecom and Vodafone today announced they had submitted a joint response to the Rural Broadband Initiative (RBI), in which the companies will combine their resources to build new, open access network infrastructure for the provision of broadband in rural areas using a range of technologies.

The RBI seeks to provide fibre to 97 percent of rural schools and a minimum 5Mbps broadband service to 80 percent of rural households within six years. It also aims to provide priority users with access to fibre-based broadband services.

The proposed solution announced today will meet the requirements of the scheme through the extension of Telecom’s existing fibre infrastructure to key rural points of presence, including schools and hospitals, and an expanded Vodafone wireless infrastructure that harnesses the power of this fibre to deliver high speed broadband services wirelessly.

It will bring rural broadband users greater choice in terms of providers and technologies, both fixed and wireless.

The proposal extends Telecom’s fast broadband (10Mbps+) rollout to 92 percent of the country, bringing city-grade fixed broadband to even more rural users.

At the heart of the proposal is the principle of open access. Both fibre and wireless components will be available on an equivalent basis to access

seekers and wholesale customers, allowing any party to offer a retail service over the new infrastructure. This means that rural customers will have not only faster data services but also a much wider choice of technologies and suppliers for these services.

Telecom will be responsible for building fibre to schools and hospitals, cell sites and rural exchanges and cabinets.

Vodafone will be responsible for design and build of open access tower infrastructure that Vodafone and Telecom XT will co-locate their mobile services on, as indeed could any other wireless service provider who wishes to do so.

Both Telecom and Vodafone will also be making additional investments in their networks in the areas covered by the RBI scheme to offer broadband services to their customers.

“This solution sees New Zealand’s two largest telecommunications providers combining their extensive resources and skills to bring the benefits of high speed broadband to rural communities as quickly as possible,” said Telecom CEO Paul Reynolds.

“It is in these very communities that so much of the nation’s economic wealth is generated.

“By collaborating, our companies are showing that the telecommunications industry is working for the good of New Zealand to deliver a solution that will accelerate the commercial success and social connectivity of New Zealand’s rural and regional communities, employing fixed and mobile technology.”

Vodafone CEO Russell Stanners says: “We want to provide the best technology fit, giving the best bang-for-buck for the New Zealand taxpayer.

“Wireless is now recognised internationally as playing a critical role in reaching rural areas, where it is the most efficient way to deliver high speed internet access. The spin-off benefit of building more cell sites to deliver a broadband service to homes and businesses is the significant expansion of mobile voice, SMS and data coverage in rural New Zealand.”

The joint proposal builds on the extensive community engagement process both companies have undertaken with rural communities and stakeholders.

Vodafone and Telecom remain open to future collaboration with other parties to deliver broadband services to regional and remote New Zealand.

The Ministry of Economic Development is running the bid process for the RBI, and a decision by the Minister is expected to be made by Christmas.

Note: If the joint bid from Telecom and Vodafone is accepted it is unlikely there will be any material changes to Telecom’s EBITDA or Capex guidance.
--ENDS--

Matt East

exportgoldman

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#403875 12-Nov-2010 13:15

Behodar: As someone who lives in a smaller town, the two "choices" here are the local power company and Telecom/Chorus. I believe that if the power company gets it, then fibre will be rolled out here sooner, compared with Telecom which will most likely focus on the big cities first.

Does that sound like a sensible assumption or are there complications that I'm not seeing?

Actually Telecom with it's cabinet/ADSL2/fibre to the node rollout started with the small towns first and worked into the big cities, as the bigger cities are more complex to rollout.

For example I live in the heart of Auckland (Parnell) and I am one of the very very last people to get ADSL2 in NZ :) The last cabinets to be deployed are around sep-nov 2011 so I have another year to wait!!!!

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

Ragnor

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#403876 12-Nov-2010 13:16

Open access towers wow would have never believed that both companies would decide to go down such a sensible route.

Beccara

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#403899 12-Nov-2010 14:27

Telecom and Vodafone along with a couple of other players already share tower space, I doubt this leopard has changed it's spots enough that companies wanting access to these open towers wont be hit with a $500k "integration testing" fee or some such method to cripple access to these towers

LAC

107 posts

Master Geek

#403938 12-Nov-2010 16:18

freitasm:
LAC: What do you all think about this? Do you think its a good idea that Telecom rape this idea? Lol?! :(

What do you think, and more importantly, why do you think it?

Well I feel Telecom has been unfair when it comes to broadband with there unrealistic broadband caps. The internet is meant to be fun and exciting. If Telecom run the UFB network then they would make another unrealistic bandwdith cap or make you pay unrealistic amounts.

graemeh

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#403947 12-Nov-2010 16:49

LAC:
freitasm:
LAC: What do you all think about this? Do you think its a good idea that Telecom rape this idea? Lol?! :(

What do you think, and more importantly, why do you think it?

Well I feel Telecom has been unfair when it comes to broadband with there unrealistic broadband caps. The internet is meant to be fun and exciting. If Telecom run the UFB network then they would make another unrealistic bandwdith cap or make you pay unrealistic amounts.

You would not buy internet access from the UFB network operator, you would buy it from someone like Vodafone, Xnet or Orcon. They would buy a connection from the UFB operator to get data from your house to the ISP's network and then out to the internet.

There is no reason for the UFB operator to impose unrealistic bandwidth caps as they are going to be selling simple bulk access, it is the ISP that will have to impose limits to stop their network getting flooded. :)

LAC

107 posts

Master Geek

#403948 12-Nov-2010 16:51

But what if you are with someone that is also the network operator?

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