What if the network is a government monopoly - Telecom to sell Chorus to Crown Fibre Holdings?

Forums › New Zealand Broadband › What if the network is a government monopoly - Telecom to sell Chorus to Crown Fibre Holdings?

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rygrass

134 posts

Master Geek

#334204 24-May-2010 19:57

cyril7:
- Suspend the forced bulk migration of existing broadband customers onto a new copper-based broadband service. We will, however, continue to supply this new broadband service to all new customers;

- Remove the requirement for Telecom to migrate 17,000 customers onto a new VoIP over copper service by the end of this year; and

- Remove the requirement for Telecom to build a new set of wholesale systems that are not consistent with the industry structure implied by UFB.

Telecom?s fibre-to-the-node programme is not impacted by the variation requests.

So does that means that ASAMs remain in service and current customers on them remain there? As the FTTN program is not effected does this mean that current customers on ADSL1 and on an exchange will remain there with no upgrade path (presumably unless they requrest) to ADSL2+

Sounds like some of the poor old NEAX's will live for another few years (or months yet).

Which wholesale products are effected, EUBA I presume.

Anyone care to comment.

Cyril

Well so far the NEAX's have outlived there warranty for sure ( They are brilliant pieces of technology ) . well i guess the S Type exchanges are still going to keep on going. So people still wont be able to get the basic services without this forced upgraded

Mind you it will be interesting how much the government will put into the network after all there is still lead in the ground that is still out living plastic cables!

one question that is irrelevant what are they going to do with with all the Asam 7300's are they been put into areas that never had broadband ?

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nickb800

2699 posts

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#334216 24-May-2010 20:31

rygrass:
one question that is irrelevant what are they going to do with with all the Asam 7300's are they been put into areas that never had broadband ?

This is the real concern here - within a decade chorus will be controlling the market for geeky coffee tables

Dratsab

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#334237 24-May-2010 21:28

I think BiddleCorp should run it...

robbyp

1199 posts

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#334243 24-May-2010 21:37

scuwp: The Government have killed Telecom. I think the way its looking Telecom will be nothing but a retail outlet by Christmas, with Chorus being the primary player in the Telco market in NZ. If the Government get controlling shares in Chorus, then there's no way they are going to award the fibre contract to anyone else when they have their own company to do it.

Is that a good idea? That I don't know. I just wish they would make their minds up and get on with it for all our sakes.

That is quite correct, and doesn't look good for investing in NZ companies by NZers. It is what happens when regulation goes too far, and essentially the companies value is only a fraction of what it was just a few years ago. The only good decision that has gone telecoms way over the last few years, was the sale of the yellowpages.

insane

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#334306 25-May-2010 02:11

Cymro:
cyril7:
- Suspend the forced bulk migration of existing broadband customers onto a new copper-based broadband service. We will, however, continue to supply this new broadband service to all new customers;

- Remove the requirement for Telecom to migrate 17,000 customers onto a new VoIP over copper service by the end of this year; and

- Remove the requirement for Telecom to build a new set of wholesale systems that are not consistent with the industry structure implied by UFB.

Telecom?s fibre-to-the-node programme is not impacted by the variation requests.

So does that means that ASAMs remain in service and current customers on them remain there? As the FTTN program is not effected does this mean that current customers on ADSL1 and on an exchange will remain there with no upgrade path (presumably unless they requrest) to ADSL2+

Sounds like some of the poor old NEAX's will live for another few years (or months yet).

Which wholesale products are effected, EUBA I presume.

Anyone care to comment.

Cyril

They refer to some of the Regulatory Undertakings agreed with the last government

First one refers to moving pre-2010 Telecom Retail customers on Telecom's old DSL product (FIPD) onto one of the new UBA products, no benefit to the customer at all but the normal risks any migration incurs.

Second one was a bit pointless, force Telecom to launch a VoIP product and attract 17k customers to it, surely thats commercial and not something to be regulated?

Third one is around FMO Wholesale Fulfil systems, from memory a complete rebuild and new B2B gateways to support UBA as well as Sub-loop stuff, all redundant in a UFB world.

The first one was never about the benifit to customers, but rather ensuring that Xtra/Telecom were using the same product that other wholesale ISPs have to make use of, and to use all the same tools that wholesale ISPs only have. Currently Xtra/Telecom still have a number of extra systems which allow them more visability and control over customers DSL connections through their close ties with Faults and Provisioning.

agreed the second point is silly, who cares its its VoIP or not, its the service that people are after, not how its delivered.

Point 3 is very valid as Telecom wholesale have been very slow in this regaard and with them outsourcing their B2B system to datacraft has caused all manner of issues to wholesale ISPs trying to interface with their system. The number of bugs we as an ISP have proved/raised to them over their botched implementation is very disapointing to say the least. This really needs to get sorted out.

Byrned

453 posts

Ultimate Geek

#334335 25-May-2010 09:17

scuwp: If the Government get controlling shares in Chorus, then there's no way they are going to award the fibre contract to anyone else when they have their own company to do it.

Look at Kiwirail and them not bidding to build Aucklands new trains. Just because they could doesn't mean they would.

sbiddle

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#334351 25-May-2010 10:00

The voice undertaking is an interesting one. I know an awful lot about Telecom's VoIP offering and was hoping to write an article on this because the move to VoIP, especially because 17000 lines using premise based RGW's is a very significant one.

Unfortunately trying to find official information from Telecom on this has been difficult so it's not something I'm doing just yet.

I believe this target was set by the Government, who also said that all NEAX's should be shut off by 2020. Both PSTN emulation and PSTN simulation are very valid models and it was interesting that Telecom's first NGN voice deployment had to be premise based RGW's and not voice cards in cabinet ISAM's.

nickb800

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#334397 25-May-2010 11:21

Byrned:
scuwp: If the Government get controlling shares in Chorus, then there's no way they are going to award the fibre contract to anyone else when they have their own company to do it.

Look at Kiwirail and them not bidding to build Aucklands new trains. Just because they could doesn't mean they would.

Thats a slightly different issue, it was manafacturing that could be done anywhere in the world, and would be outsourced to the cheapest tenderer. Kiwirail hillside was not going to be cost competitive.
FTTH/D/C will be done in NZ by people in NZ so the tenders will be a lot closer together price wise. IF they will own chorus then going with the downer edi through chorus seems a logical option as they have the people on the ground in every town already, and thus are likely to have cheapest tender.

Byrned

453 posts

Ultimate Geek

#334442 25-May-2010 12:22

nickb800:
Byrned:
scuwp: If the Government get controlling shares in Chorus, then there's no way they are going to award the fibre contract to anyone else when they have their own company to do it.

Look at Kiwirail and them not bidding to build Aucklands new trains. Just because they could doesn't mean they would.

Thats a slightly different issue, it was manafacturing that could be done anywhere in the world, and would be outsourced to the cheapest tenderer. Kiwirail hillside was not going to be cost competitive.
FTTH/D/C will be done in NZ by people in NZ so the tenders will be a lot closer together price wise. IF they will own chorus then going with the downer edi through chorus seems a logical option as they have the people on the ground in every town already, and thus are likely to have cheapest tender.

Sure, all issues are slightly different but the point I was making is that we can take the lessons learnt from this and apply them to other situations.

It could've been easily argued that it was cost competitive. I remember a report going around that with the tax take, the benefits to the local community, and other factors, it would've reduced the price by 60%.

From what I understand the main implications are that they've never done this type of work before. That and trying to avoid the appearance of favoritism was one of the things I think Steven Joyce said.

So based on what I was saying, Vodafone in conjunction with Axia NetMedia would be the logical choice because of there experience deploying fibre, as long as they were reasonably price competitive.

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