Go Large Go small

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grant_k

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#51543 7-Nov-2006 23:20

Yeah, OK I can see where you're coming from, fair point.

However, with the cost and delays in getting Resource Consent to do anything these days, it would be enough to put just about anybody off investing. There are no easy solutions to this impasse.

freitasm

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#51545 7-Nov-2006 23:22

I agree - for example when the Auckland City Council blocked TelstraClear plans to deploy a cable network. They can't complain now they have no access to a fast broadband alternative.

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grant_k

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#51546 7-Nov-2006 23:29

freitasm: ...Auckland City Council blocked TelstraClear plans to deploy a cable network. They can't complain now they have no access to a fast broadband alternative.

Trouble is, Auckland City Council don't give a rat's a*s about fast broadband. They just keep turning the screws tighter every year with increased rates.

It's us, the ratepayers who would like a fast broadband alternative like you have in Wellington. One without all the lag and unreliability due to aging copper in the ground. Every time it rained heavily for about 2 years, our phone would go out. Telecom would play around with the connections each time we complained. Finally they bit the bullet and pulled the old cable out of the plastic pipe under our lawn and put in a new piece of cable, cost probably $10 or less. Yet it took 5 or 6 callouts to get that result.

You guys in Wellington are so lucky to have 21st century infrastructure

nzbnw

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#51547 7-Nov-2006 23:33

exportgoldman:Actually freitasm you must be new around here :-)

freitasm you n00b you!

exportgoldman

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#51560 8-Nov-2006 08:12

Grant17:
freitasm: When I say "nothing prevented other providers of establishing their own infrastructure. Why didn't they?

For the same reason that you didn't see another power company laying alternative power lines down your street...

It's what is known as a "Natural Monopoly" i.e. it's uneconomic to have a duplicate set of infrastructure.

I think you both missed my point.

The government, in the form of the commerce commission had a very chilling effect on competition on the local loop by ruling against Saturn on a case which was clearly predatory pricing. (They were offering discounts street by street when Saturn laid cable, so existing Telecom customers would not switch to Saturn.)

They never offered this "Loyalty Discount" to any customer which could not get Saturn.

The affect this had on the local loop market was the total freeze of Saturn's network buildout, and the lack of anyone else willing to put up with such government backed Telecom monopoly predatory pricing.

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JonC

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#51565 8-Nov-2006 09:21

exportgoldman:

I think you both missed my point.

The government, in the form of the commerce commission had a very chilling effect on competition on the local loop by ruling against Saturn on a case which was clearly predatory pricing. (They were offering discounts street by street when Saturn laid cable, so existing Telecom customers would not switch to Saturn.)

They never offered this "Loyalty Discount" to any customer which could not get Saturn.

The affect this had on the local loop market was the total freeze of Saturn's network buildout, and the lack of anyone else willing to put up with such government backed Telecom monopoly predatory pricing.

I completely agree - why the same predatory pricing exists today is quite beyond me. It must have cost Telecom more to put exceptions into their billing system than to drop prices for everyone across NZ.

Given Telecom's track record of trying to intimidate the government into not doing LLU, I'm guessing they did the same thing with the CC, except they succeeded that time.

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