Broadband Prices In 223 Countries Revealed. New Zealand Ranks In 128th Place

Forums › New Zealand Broadband › Broadband Prices In 223 Countries Revealed. New Zealand Ranks In 128th Place - Do Kiwis Pay Too Much?

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wickedlolipoo

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#3242753 30-May-2024 15:58

There were unbundling of copper service UCLL/ADSL a long time back,

I wonder if we will see unbundling of fibre?It will certainly make broadband much cheaper and more competitive.

The market is very tight there isn't much flexibility. All ISPs charges the same rate and there isn't much competition.

Talkiet

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#3242756 30-May-2024 16:07

wickedlolipoo:

I wonder if we will see unbundling of fibre?It will certainly make broadband much cheaper and more competitive.

The market is very tight there isn't much flexibility. All ISPs charges the same rate and there isn't much competition.

https://www.mbie.govt.nz/science-and-technology/it-communications-and-broadband/our-role-in-the-ict-sector/fibre-regulatory-framework

Unbundling fibre has been an option for some time. The scale required to make it cheaper than purchasing the existing products is... challenging.

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

Talkiet

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#3242759 30-May-2024 16:10

wickedlolipoo:

I wonder if we will see unbundling of fibre?It will certainly make broadband much cheaper and more competitive.

The market is very tight there isn't much flexibility. All ISPs charges the same rate and there isn't much competition.

Isn't it more logical to assume that, given a market with many ISPs, if there's little price variation then there's actually quite a lot of competition?

Surely if everyone is making vast amounts of money then a new entrant can jump in and charge heaps less and make a huge profit?

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

wellygary

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#3242761 30-May-2024 16:13

Talkiet:

Unbundling fibre has been an option for some time. The scale required to make it cheaper than purchasing the existing products is... challenging.

Yeah,

Copper bundling was economically worthwhile for ISPs because the Copper overheads were quite high as Telecom was able to include many years of costs from when it operated as an unregulated provider without competition..

Chorus has pretty much been regulated since Day 1, so it hasn't been able to "pad" its UFB infrastructure assets ..

(plus when they signed up to the UFB contract the govt would have had another opportunity to ferret round and make sure its wasn't getting stiffed on what it was paying for)

Thus its doubtful that there is enough "fat" that either Spark or One could avoid by provisioning services directly to the customer...

billbennett

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#3249915 17-Jun-2024 13:06

FineWine:

Interesting article. I have always thought that we pay to much.

Broadband Prices In 223 Countries Revealed. New Zealand Ranks In 128th Place - Do Kiwis Pay Too Much?

I'm late to this party, but decided to write a longish post on the subject. If you don't want to read the whole thing, it boils down to "We probably don't pay too much for broadband".

https://billbennett.co.nz/reflections-on-nz-pays-too-much-for-broadband/

But read it anyway and argue if you think it's wrong.

Bill Bennett www.billbennett.co.nz @billbennettnz

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