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1420 posts

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Topic # 6333 17-Jan-2006 09:30
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This has popped up in other forums but I thought may be it is time for a bit of healthy debate. For those who have not read it, the strategy has one goal:

'New Zealand will be in the top quarter of the OECD for broadband uptake by 2010'

Digital Strategy

There is no doubt that we all want fast and cheap broadband but is regulation the right way to go? After all there are other technologies that will provide 'last mile' broadband such as WiMAX.

Rather than regulating and demanding that Telecom lower the price and increase the speed wouldn't it be better and more prudent to encourage investment in other technologies to reduce the reliance on and dominance of Telecom? This could be done with a seed fund and by allowing new market entrants to operate tax free for 2 to 3 years. Look at what tax rebates have done for the NZ film industry!

Remember years ago there were probably 30 odd ISP's before the industry consolidated. A number of these operators were small niche players that didn't need large customer numbers to survive.

Perhaps this is where broadband should go. There could be a whole cottage industry built around a number of providers each servicing a patch with wireless technology. After all TUANZ keep saying that comptetition will lower prices.

I just don't see that regulating Telecom will offer 'true' competition. After all there will be a set wholesale price and providers will just compete by ripping the b_lls out of the margin until no one makes any money. This is not good business.

Also, whilst it is noble of the government to have formulated a 'digital strategy' is it not a little flawed to pin the goal of the whole strategy on where we end up in the OECD? Sure, this is an easy measure of success but surely it makes more sense to set economic goals i.e. by 2010 $xx will be derived from online commerce.

For those who are interested there is a a web site dedicated to bagging Telecom and NZ broadband. It is a bit one sided and I don't necessarily agree with all that is said but it does make interesting reading here.

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BDFL - Memuneh
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Reply # 26592 17-Jan-2006 09:57
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Folks, as per the last link in the OP - if you want to complain about a or b then this is not the thread for it.

Use this thread to comment on the overall strategy, expected results, competitive advantages gained from it.

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Reply # 26788 20-Jan-2006 10:27
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Where is the healthy debate?


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Reply # 27005 24-Jan-2006 15:27
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"There is no doubt that we all want fast and cheap broadband but is regulation the right way to go?"

Ha ha - reminds of an article I read a month or so ago - in the IEEE Communications Magazine (i.e. not some opinonated news paper article).


Excerpt: "
It is timely to ask: Why do we regulate telecommunications? What might happen in the absence of regulation?
Few realize that this experiment has already been attempted in New Zealand, and the verdict is in: outright elimination of telecommunications regulation is a bad idea."

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Wannabe Geek

Reply # 28648 16-Feb-2006 18:11
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I see this topic is a bit old and there were not as many replies as I hoped to see.

I'm all for the competition. I know of some very big international interest in setting up Telecommunications business here, with what I believe to be the financial might to start creating very real competition to Telecom. These kind of tax incentives would certainly make that a very attractive option instead of coming in small as yet another reseller.

It's going to happen, just hopefully sooner than later.


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