Carve Up The Telecom Turkey

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JonC

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#10932 20-Dec-2006 14:28

With the exact nature of Telecom's imminent carve-up yet to be decided, I'd be interested in the opinions of other Geekzoners as to how it should be carved up and why.

Telecom have proposed that only the copper loop should be included in the network division, whereas the "Internet Service Providers Association" says that Telecom's backhaul and incoming fibre should also be included.

From a broadband user's point of view, I would think that having ISPs provide their own backhaul would be far more advantageous as this means there will be less finger-pointing by ISPs over bottlenecks and also more backhaul capacity for users. The ISPs would actually have to invest money in their own network, which is probably why they don't like the idea.

Also, with LLU on the cards, surely the whole point of that is for ISPs to be installing their own equipment at the edge of the copper loop to provide faster types of ADSL.

Am I missing something here?

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#55944 20-Dec-2006 14:40

And so another flame-fest starts...

Juha

johnr

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#55949 20-Dec-2006 15:20

So much for owning something you purchase

freitasm

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#55961 20-Dec-2006 17:51

Yep... You can buy a car now, and in a few years time your neighbour will cry to the local council to "unbundle" it, so that s/he can get it for a spin on Saturday night.

I am pretty sure when Telecom investors bought the company off the NZ Post/NZ government there was no indication that they would have to part from their money years later.

So much for free market...

juha

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#55962 20-Dec-2006 18:04

Well, the government at the time made it clear in the deal that if competition didn't happen, more regulation would be introduced. However, if Telecom had played along with the government, met some pretty easy social goals etc, there wouldn't have been any regulation.

If I was a Telecom investor, I'd first of all feel very pleased as to profits and dividends of the past, and then be not a little cross that the current management killed the goose that laid that golden egg.

Juha

g7viz

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#55979 20-Dec-2006 21:35

IMO Telecom have sadly abused their market position. Their prices are too high, their broadband is too slow, their broadband support is sadly lacking, not enough money has been spent on the network infrastructure, they need to take broadband to the more rural communities and stop some of their reported dubious business practises. Unless they do that, and do it quickly, regulation is the only place left for the government. A good telecoms infrastructure will do wonders for NZ's economy and I for one, urge the governemnt to do whatever is necessary.

bradstewart

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#55980 20-Dec-2006 21:40

g7viz: Unless they do that, and do it quickly, regulation is the only place left for the government.

Have you missed the news? Regulation has already happened...

cokemaster

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#55982 20-Dec-2006 21:41

Rural customers will always cost more to service, I wonder if all these 'competitors' wanting to provide services (which they could at anytime) are willing to invest more to cover these smaller groups of customers... or will they just settle for the cities?

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#55983 20-Dec-2006 21:43

I live through LLU and separation of the incumbent in the UK(BT), there are so many telecos there now it has caused huge confusion in the market and do you know who is the dominant player? BT

So what was Achieved ??

What do you think will be achieved here? probably not too much!

juha

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#55984 20-Dec-2006 21:47

bradstewart: Have you missed the news? Regulation has already happened...

No... it hasn't happened yet. Next year it will happen though.

Juha

bradstewart

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#55985 20-Dec-2006 21:49

Well to be clear the law has been passed already... So regulation is a foregone conclusion

juha

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#55986 20-Dec-2006 21:49

cokemaster: Rural customers will always cost more to service, I wonder if all these 'competitors' wanting to provide services (which they could at anytime) are willing to invest more to cover these smaller groups of customers... or will they just settle for the cities?

Telecom decided to cease rural and provincial broadband investment a year ago, after the Commerce Commission said TelstraClear could have a regulated UBS.

Juha

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#55987 20-Dec-2006 21:50

bradstewart: Well to be clear the law has been passed already... So regulation is a foregone conclusion

No, it's not ready yet, nor are the effects of it.

Juha

g7viz

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#55989 20-Dec-2006 21:55

bradstewart:
g7viz: Unless they do that, and do it quickly, regulation is the only place left for the government.

Have you missed the news? Regulation has already happened...

All that has happened so far is LLU. Real regulation is about price controls and other social obligations that can be put on to telecom. If the government put in place a NZ OFCOM (OFCOM is the regulator in the UK) then you will see some real change.

g7viz

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#55990 20-Dec-2006 21:57

cokemaster: Rural customers will always cost more to service, I wonder if all these 'competitors' wanting to provide services (which they could at anytime) are willing to invest more to cover these smaller groups of customers... or will they just settle for the cities?

Cokemaster, but that is exactly what regulation is used for ... to create a level playing field. Equal access to services at a fair price regardless of location. Telecom will have to change!

juha

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#55991 20-Dec-2006 21:58

g7viz: All that has happened so far is LLU. Real regulation is about price controls and other social obligations that can be put on to telecom. If the goovernment put in place a NZ OFCOM (OFCOM is the regulator in the UK) then you will see some real change.

No no no... nothing has happened yet besides a bunch of politicians and lawyers and telco executives mating with each other. More to come, almost there, but not quite ready yet.

Juha

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