Geekzone: technology news, blogs, forums
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

View this topic in a long page with up to 500 replies per page Create new topic
1 | 2 
3273 posts

Uber Geek
+1 received by user: 978


  Reply # 1309106 21-May-2015 09:38
Send private message

richms: 6% ROI is embarrasingly low. But I think before they look at regulating the price up, they should look at chorus inefficiancies etc first because im sure that would help more than a price increase on the copper.

Agree with this. Granted it's mostly anecdotal, but you only have to look at the stories around here to see the almost comical inefficiencies in the whole process. Yes chorus will say "It's our sub-contractors fault, they have to wear the cost of it" but when you look at the sheer number of these stories you start to realize that the sub-contractors must be passing these costs on to chorus in some way.  I also have an acquaintance who set himself up as a sub-contractor to chorus and he seems to be absolutely raking in the money, to the point he only has to work every second week.  I'm all for people earning a decent living, and being rewarded for hard work, but something just doesn't seem right with the whole picture.

895 posts

Ultimate Geek
+1 received by user: 285

  Reply # 1309112 21-May-2015 09:53
Send private message

Aredwood: This all comes down to. Do we all want cheap and crappy internet. Or faster / better internet that costs a little more? As more money to Chorus will mean more to spend on better rural internet. And more  to spend on backhaul upgrades.

ISPs pay Chorus for backhaul for DSL, and buy backhaul themselves for UFB.  So backhaul is a red herring.

With DSL an ISP can choose to use Chorus or their own backhaul. Most big ISPs would use their own backhaul rather than Chorus tail extensions.

Yes, that's correct.  I should have said what I really meant -- which is that there would be some scope for backhaul improvements between interconnect points and cabinets when e.g. conklins get upgraded, but that overall load on Chorus-provided backhaul would drop as customers moved off the old network onto UFB.


27676 posts

Uber Geek
+1 received by user: 7158

Biddle Corp
Lifetime subscriber

  Reply # 1309137 21-May-2015 09:56
Send private message

cyberhub: I understand that Chorus want people to move to UFB services, but raising the price of it seems odd. 

Perhaps they have decided that maintaining two sets of infrastructure is not ideal and want to just have a fibre network.  So as people move off copper they will eventually decommission the fibre network.  Kinda like how CDMA went with Telecom.

You mean raising the price of copper seems odd? Why I might ask?

A forward looking price model will (and should) see the price of copper increase - it's basic economics. As demand for copper reduces, the Commerce Commission (inline with their intended outcome) have to increase the price of copper with a forward looking model so that adequate return on that asset occurs, and with the number of users decreasing that means the cost has to increase. A forward looking pricing model was called by last year by many(including Spark), and if they weren't happy with this, maybe they couldn't have called for a review.

It's worth remembering that there are also yearly price increases for many UFB plans scheduled to occur until 2020 as well.

The issue about whether copper and fibre pricing should be related in any way, and whether steps should be taken to increase a move to fibre is a very different debate.

I assume you also mean Chorus decommissioning the copper network, not the fibre network?

1 | 2 
View this topic in a long page with up to 500 replies per page Create new topic

Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:

Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:

Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:

News »

NZ and France seek to end use of social media for acts of terrorism
Posted 24-Apr-2019 12:13

Intel introduces the 9th Gen Intel Core mobile processors
Posted 24-Apr-2019 12:03

Spark partners with OPPO to bring new AX5s smartphone to New Zealand
Posted 24-Apr-2019 09:54

Orcon announces new always-on internet service for Small Business
Posted 18-Apr-2019 10:19

Spark Sport prices for Rugby World Cup 2019 announced
Posted 16-Apr-2019 07:58

2degrees launches new unlimited mobile plan
Posted 15-Apr-2019 09:35

Redgate brings together major industry speakers for SQL in the City Summits
Posted 13-Apr-2019 12:35

Exported honey authenticated on Blockchain
Posted 10-Apr-2019 21:19

HPE and Nutanix partner to deliver hybrid cloud as a service
Posted 10-Apr-2019 21:12

Southern Cross and ASN sign contract for Southern Cross NEXT
Posted 10-Apr-2019 21:09

Data security top New Zealand consumer priority when choosing a bank
Posted 10-Apr-2019 21:07

Samsung announces first 8K screens to hit New Zealand
Posted 10-Apr-2019 21:03

New cyber-protection and insurance product for businesses launched in APAC
Posted 10-Apr-2019 20:59

Kiwis ensure streaming is never interrupted by opting for uncapped broadband plans
Posted 7-Apr-2019 09:05

DHL Express introduces new MyDHL+ online portal to make shipping easier
Posted 7-Apr-2019 08:51

Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.