[TelstraClear] TelstraClear and Pegasus Town: my thoughts on non-event

Forums › One New Zealand (including Vodafone, WxC, Farmside) › [TelstraClear] TelstraClear and Pegasus Town: my thoughts on non-event

freitasm

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#12589 26-Mar-2007 17:38

I've posted some comments in my blog about today's announcement of TelstraClear and Pegasus Town.

Really, TCL wants to deploy 10Mbps services to a new development? They should put fiber everywhere there!

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#65070 26-Mar-2007 19:37

I don't really understand the 'exclusive' nature of the thing. It sounds like they aren't really 'future proofing' anyone, particularly with the lack of Fiber to the home. They are clearly in the position to do it now, while its being built.

An exclusive deals just locks a customer into a provider generally resulting higher prices, lower service and slower speeds. I thought we had already 'learned our lesson' with that stuff already. If they opened it up for anyone to put their cables down, you'd probably see a much more competitive offering.

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#65073 26-Mar-2007 19:55

cokemaster: I don't really understand the 'exclusive' nature of the thing. It sounds like they aren't really 'future proofing' anyone, particularly with the lack of Fiber to the home. They are clearly in the position to do it now, while its being built.

An exclusive deals just locks a customer into a provider generally resulting higher prices, lower service and slower speeds. I thought we had already 'learned our lesson' with that stuff already. If they opened it up for anyone to put their cables down, you'd probably see a much more competitive offering.

Telecom made a big noise about connecting the 500 homes in Manakau with Fibre, then dramatically scaled down the service to something little better than an Xtra ADSL.

Is Telecom going to make the fibre available to anyone who wants to provide services? I doubt it. We've just gone through this whole LLU exercise on just that question, and that covers 40 year old copper.

What about high rise apartments? who controls access to the floors for the residents? the body corporate or the landlord? and what do you do if the landlord says "I've done a deal with Telecom, that's yer lot".

Finally, who said Pegasus WASN'T prepared for a future when services could be delivered over Fibre?

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#65074 26-Mar-2007 20:06

The thing is that if they offered competitors access during the time of construction, residents gain more competitive services.

This is not about Telecom or Telstraclear.

This is about:

1. Giving exclusive (read: monopoly) access to a single company within an area (whether it be building, town, whatever).

As you well know - monopolies have the reputation of

Driving up prices
Lower quality of service
Non-competitive offerings (ie. slower speeds, small datacaps etc)

2. Not taking up the chance to put the latest technology into the ground. Which means when it comes to times where people could actually really use those services, the place is stuck with old technology which can't really be dug up because of their desire not to dig up the footpaths. Furthermore, what is sad is that this technologies exist now, the ideas of futureproofing exist now, and it is put aside because of an exclusive arrangement.

Telecom comparisons are starting to be a mute point now, thanks to LLU - any provider can potentially operate over the copper, providing they have the will and means to invest. However I wonder if the same applies to certain cable installations going into places like this...

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#65097 26-Mar-2007 23:42

1. Most developers are not too keen on allowing extra common ducting and cabinet space just so telcos can have an easier time installing connectivity. They have to pass this cost on which translates to higher prices up front for you, you pay somewhere :)

2. TCL probably have a lot of cable kit sitting round waiting to be used, also they know how to do cable and have the needed fixed costs associated with this network already in place, so this is a low risk solution for them with faster ROI.

Cable will continue to scale in the future, sure not as well as a dedicated twisted pair but its not anything to sneeze at either. The transistion to GPON is not totally out of the question down the track either.