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




BDFL - Memuneh
60007 posts

Uber Geek
+1 received by user: 11107

Administrator
Trusted
Geekzone
Lifetime subscriber

Topic # 8125 5-Jun-2006 21:54
Send private message

Received this just now:

Orcon smashes the price of broadband down to $19.95; announces new wholesale network

Orcon Internet is leading the charge to provide New Zealanders with affordable broadband with today’s launch of a new $19.95 broadband plan.  For the first time in New Zealand history, the price of broadband has gone below the average price of dial-up.  This is the first step in preparation for a $30 million investment in broadband infrastructure over the next 5 years by the 100% kiwi-owned company.
 
“There are still hundreds of thousands of kiwis on dial-up paying $27.95 per month; with our new broadband plan priced at just $19.95, all kiwis can afford the luxury of broadband at home. Our new plan at $19.95 has the same specs as Xtra’s $29.95 offering, but with bill shock protection for mum and dad consumers” says Orcon’s General Manager of Operations Scott Bartlett.
 
“Our plans have always been far superior to those of other larger players in the market, with our existing $29.95 plan offering 10 times as much data and 10 times cheaper excess data; but this new plan at $19.95 provides for a very affordable entry point for those customers who have put off the leap from dial-up to broadband due to price.”
 
“We think it’s about time that New Zealand catches up with the rest of the world and has access to affordable broadband; and we know that people are fed up with waiting for it to happen” continued Bartlett.
            
Orcon speculated $10 per month broadband would be on the cards when LLU was first announced last month.
 
“We decided not to wait for LLU to kick in, and put this $19.95 offer out there now. We remain committed to our goal of $10 per month broadband, but it will only be feasible once LLU is underway” continued Bartlett.
 
“In order for us to get as many kiwis on true broadband under LLU, we need scale to justify our investment plans.  We are partnering with a number of other ISP’s to wholesale off the new network, but a large part of our motivation behind the new $19.95 broadband plan is to bring new customers to Orcon who have the desire to support a kiwi company in delivering quality broadband now and into the future.”
 
This bold move is part of a long term plan that will see Orcon invest over $30 million in building a new wholesale ADSL2+ broadband network, capable of delivering download speeds of up to 24Mbit, voice services and IPTV (with over 50 channels set for launch in late 2007).
  
“We have decided to build a true broadband network that can deliver the kinds of speeds and services that customers are demanding today.  Not only fast downloads, but triple-play services such as IPTV and voice services. Orcon has taken the additional step of committing to making our new ADSL2+ network available to wholesale partners.  Today we have only one wholesale ADSL network in New Zealand, but we are committed to opening up our network to any ISP or technology access seeker for wholesale, thereby breathing new life into the ISP industry” says Bartlett.
 
Orcon’s new network will be built initially in the main centers, with other areas including rural/provincial cities such as Hastings, Napier, New Plymouth, Palmerston North, Dunedin, Whangarei, Hamilton, Tauranga, Nelson, Invercargill, Masterton and Wanganui coming online in stages 2 and 3 of our network build (over a 2-5 year period).
 
An exact construction start date has yet to be set; as Orcon eagerly awaits the results of either commercial negotiation with Telecom for LLU access, or legislation from the Government consistent with the broadband package announced in early May.
 
Orcon is already the third largest ISP wholesaler in New Zealand, and as such is well placed to make open access wholesale LLU work. Orcon is also the 4th largest ISP in New Zealand and is 100% Kiwi owned and operated.
 
 
Broadband plan details:
256Kbps/128Kbps
$19.95 p/month with Orcon tolls
$29.95 p/month without Orcon tolls
200MB of data
$0.02c p/MB excess charge
Charging cap of $149.95 p/month
Free connection (saving of $99)
 
Investment details:
$14.1 million in stage one, delivering ADSL2+ services to over 250,000 kiwis, including IPTV and VoIP
$16 million in stages two and three, delivering ADSL2+ services to more urban and rural/provincial centres
Partnering with large international Telecommunications business (to be announced)


Taking out the filling (yawn, there must be a PR course where people learn how to write these things), I am really thinking if they have the capability (investments, resource consent, etc) to deliver a new ADSL network, parallel to Telecom's.





View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2
Juha
1318 posts

Uber Geek
+1 received by user: 5

Trusted
Subscriber

Reply # 37763 6-Jun-2006 08:35
Send private message

Wrote a quick piece about it for Computerworld last night, but in brief, Orcon's planned network will run over Telecom's copper. No RMA consent and parallel network needed, in other words, and it seems Orcon has stitched up a deal with a large equipment supplier as well.

It's an interesting development as it's the first reasonably concrete evidence of other players investing (it won't be rock-solid until it's deployed of course) after the new regulation was introduced. Also, it shows that Theresa and Telecom may indeed have been sincere when they said they'd play along with with new rules rather hindering them.

We'll see what comes out of it.




26199 posts

Uber Geek
+1 received by user: 5797

Moderator
Trusted
Biddle Corp
Lifetime subscriber

Reply # 37765 6-Jun-2006 08:49
Send private message

juha: Wrote a quick piece about it for Computerworld last night, but in brief, Orcon's planned network will run over Telecom's copper. No RMA consent and parallel network needed, in other words, and it seems Orcon has stitched up a deal with a large equipment supplier as well.

It's an interesting development as it's the first reasonably concrete evidence of other players investing (it won't be rock-solid until it's deployed of course) after the new regulation was introduced. Also, it shows that Theresa and Telecom may indeed have been sincere when they said they'd play along with with new rules rather hindering them.

We'll see what comes out of it.


I've heard rumors of another ISP already investing in a nationwide VoIP network due for launch within the 12 months with DID available in all major metropolitan areas. I had believed it was ihug but this could well be related to Orcons accouncement. Slingshot appear to have put iTalk on "hold" at present due to the very poor quality of VoIP over existing ADSL connections so things could be very interesting if Orcon can pull a deal out of the bag and be offering an alternative network offering true double play serevices to customers. Considering Orcon always seemed to have been in bed with Telecom it would be interesting to see if this network is something we could see sooner rather than later.


 
 
 
 


Try Wrike: fast, easy, and efficient project collaboration software


BDFL - Memuneh
60007 posts

Uber Geek
+1 received by user: 11107

Administrator
Trusted
Geekzone
Lifetime subscriber

Reply # 37766 6-Jun-2006 08:53
Send private message

juha: Wrote a quick piece about it for Computerworld last night, but in brief, Orcon's planned network will run over Telecom's copper. No RMA consent and parallel network needed, in other words, and it seems Orcon has stitched up a deal with a large equipment supplier as well.

It's an interesting development as it's the first reasonably concrete evidence of other players investing (it won't be rock-solid until it's deployed of course) after the new regulation was introduced. Also, it shows that Theresa and Telecom may indeed have been sincere when they said they'd play along with with new rules rather hindering them.

We'll see what comes out of it.


See what I mean? LLU is not really development. These ISPs go out saying "We are developing a network" when they are actually only deploying routers and DSLAMs. None of those cable infrastructure, right?

[irony] Hey, URL dropper... Better tell IDG they are getting link goodness and Google juice from us. Perhaps that will increase the price Fairfax is paying for it?  [/irony]

Back to the topic...




2589 posts

Uber Geek
+1 received by user: 348

Trusted

Reply # 37769 6-Jun-2006 09:04
Send private message

Isn't ihug talking about spending $20 million on its own gear also? I'm quietly wondering if TelstraClear will soon show what their intentions are since they were so keen for LLU.

Juha
1318 posts

Uber Geek
+1 received by user: 5

Trusted
Subscriber

Reply # 37770 6-Jun-2006 09:05
Send private message

freitasm: See what I mean? LLU is not really development. These ISPs go out saying "We are developing a network" when they are actually only deploying routers and DSLAMs. None of those cable infrastructure, right?


Not quite sure what you mean here, but there's money coming in, equipment being deployed, and Telecom's getting wholesale money... so yes, I'd say it is development. What's happening now is that ISPs and Telecom will try to get as big customer bases as they can to be ready for the future. It means there will be more options for customers and a bigger market for providers. That's not such a bad thing, surely?

[irony] Hey, URL dropper... Better tell IDG they are getting link goodness and Google juice from us. Perhaps that will increase the price Fairfax is paying for it? [/irony]


Well, IDG doesn't use Google and I could only refer to the story I wrote, not copy and paste it into the forum. I've linked to Geekzone more times than the opposite, so there's no need to get huffy about it...






BDFL - Memuneh
60007 posts

Uber Geek
+1 received by user: 11107

Administrator
Trusted
Geekzone
Lifetime subscriber

Reply # 37775 6-Jun-2006 09:13
Send private message

juha:
freitasm: See what I mean? LLU is not really development. These ISPs go out saying "We are developing a network" when they are actually only deploying routers and DSLAMs. None of those cable infrastructure, right?


Not quite sure what you mean here, but there's money coming in, equipment being deployed, and Telecom's getting wholesale money... so yes, I'd say it is development. What's happening now is that ISPs and Telecom will try to get as big customer bases as they can to be ready for the future. It means there will be more options for customers and a bigger market for providers. That's not such a bad thing, surely?


Well, I mean all these companies are really going to be using copper - for a long time to come, because I haven't heard of any plans of a new infrastructure.

juha:
[irony] Hey, URL dropper... Better tell IDG they are getting link goodness and Google juice from us. Perhaps that will increase the price Fairfax is paying for it? [/irony]


Well, IDG doesn't use Google and I could only refer to the story I wrote, not copy and paste it into the forum. I've linked to Geekzone more times than the opposite, so there's no need to get huffy about it...
Hey, calm down. I should have used [joke] [/joke] tags in fact - the whole thing was a reference to Fairfax buying IDG, not complaining about linking. I actually don't like people pasting text from another sources, it's always better to link.





4295 posts

Uber Geek
+1 received by user: 148

Mod Emeritus
Trusted
Lifetime subscriber

Reply # 37777 6-Jun-2006 09:17
Send private message

freitasm: See what I mean? LLU is not really development. These ISPs go out saying "We are developing a network" when they are actually only deploying routers and DSLAMs. None of those cable infrastructure, right?

[irony] Hey, URL dropper... Better tell IDG they are getting link goodness and Google juice from us. Perhaps that will increase the price Fairfax is paying for it?  [/irony]
Back to the topic...

DSLAMs don't count as a new network. When some company comes out and build cable down my street or something, then I will take notice. We this is, is purely installing gear on Telecoms lines and undercutting Telecom and leaving them with the maintenence bills etc.

MF, you could install a few DSLAMs and have a GZ ISP.... Small investment, tidy profit.

Be nice to Juha, he's just ego boosting a little Tongue out



BDFL - Memuneh
60007 posts

Uber Geek
+1 received by user: 11107

Administrator
Trusted
Geekzone
Lifetime subscriber

Reply # 37779 6-Jun-2006 09:22
Send private message

bradstewart: DSLAMs don't count as a new network. When some company comes out and build cable down my street or something, then I will take notice. We this is, is purely installing gear on Telecoms lines and undercutting Telecom and leaving them with the maintenence bills etc.
Exactly!




Juha
1318 posts

Uber Geek
+1 received by user: 5

Trusted
Subscriber

Reply # 37781 6-Jun-2006 09:22
Send private message

freitasm: Well, I mean all these companies are really going to be using copper - for a long time to come, because I haven't heard of any plans of a new infrastructure.


Chicken and egg situation, isn't it... once you have big enough customer bases, you can start thinking about rolling out new networks to supply them with. Telecom operates like that too.

Hey, calm down. I should have used [joke] [/joke] tags in fact - the whole thing was a reference to Fairfax buying IDG, not complaining about linking. I actually don't like people pasting text from another sources, it's always better to link.



Joke tags are good. No, not getting excited here... not enough coffee for that yet :)






Juha
1318 posts

Uber Geek
+1 received by user: 5

Trusted
Subscriber

Reply # 37783 6-Jun-2006 09:28
Send private message

bradstewart: DSLAMs don't count as a new network. When some company comes out and build cable down my street or something, then I will take notice. We this is, is purely installing gear on Telecoms lines and undercutting Telecom and leaving them with the maintenence bills etc.


So you think Telecom is giving Orcon access to the copper for free? That's actually not the case. Orcon will have to pay Telecom commercial rates for access to the copper. You're confusing the issue again.

From an ideological purity perspective, it seems right to demand that any new entrant into the market should duplicate the incumbent's networks and other resources. From a realistic and practical perspective, it would be silly and wasteful to do so.

Be nice to Juha, he's just ego boosting a little Tongue out


No ego-boosting so don't worry about niceties.




1420 posts

Uber Geek

Trusted

Reply # 37784 6-Jun-2006 09:45
Send private message

Good on Orcon for announcing their plans. ihug once hinted at a $20M investment and who knows what Slingshot is up to.

Seeby is the quiet achiever, he has taken a back seat and not sought the media spot light (like others) and now he is prepared to back himself and deliver on a $30M investment. Orcon are already fully in customer grab mode by undercutting everyone on the 256kbps plan which they are selling below cost. I wonder if Annette will lodge a complaint with the Com Com?

What's the term? ihug and Slingshot are full of 'p_ss and wind'.




Twitter - GaryRo
Jama Jam

4295 posts

Uber Geek
+1 received by user: 148

Mod Emeritus
Trusted
Lifetime subscriber

Reply # 37785 6-Jun-2006 09:52
Send private message

juha:Orcon will have to pay Telecom commercial rates for access to the copper.


I know they will have to pay an access rate, which will end up being set by the government and given their recent record of favouring Telecom I can of course see that as being a rate thats fair to Telecom!

Also to add to the mornings excitement, I know that an American player is looking at the NZ telecomms arena, either for investment or as an actual entrant into market. At the moment i cant say anymore, but this source comes from within the concerned party.

4295 posts

Uber Geek
+1 received by user: 148

Mod Emeritus
Trusted
Lifetime subscriber

Reply # 37786 6-Jun-2006 09:57
Send private message

Jama: Good on Orcon for announcing their plans. ihug once hinted at a $20M investment and who knows what Slingshot is up to.

Seeby is the quiet achiever, he has taken a back seat and not sought the media spot light (like others) and now he is prepared to back himself and deliver on a $30M investment. Orcon are already fully in customer grab mode by undercutting everyone on the 256kbps plan which they are selling below cost. I wonder if Annette will lodge a complaint with the Com Com?

What's the term? ihug and Slingshot are full of 'p_ss and wind'.


It would be nice to see those two put their money where their mouth is. Annette is too concerned with bitc*ing about Telecom and making bread to actually get off rear end and do something.

2353 posts

Uber Geek
+1 received by user: 255


Reply # 37787 6-Jun-2006 10:02
Send private message

Aren't rubbish plans starting at 200MB just more of the "Confusion" that telcos are supposed to be moving away from?
I'd hardly call price capping at $149.95 "bill shock protection for mum and dad consumers".

Juha
1318 posts

Uber Geek
+1 received by user: 5

Trusted
Subscriber

Reply # 37788 6-Jun-2006 10:08
Send private message

Bung: Aren't rubbish plans starting at 200MB just more of the "Confusion" that telcos are supposed to be moving away from?
I'd hardly call price capping at $149.95 "bill shock protection for mum and dad consumers".


I was thinking something similar earlier...  you'd go through 200MB in just a week I reckon with Windows Update running on top of the normal browsing. The overage charges plus tolls explain perhaps how Orcon can resell that plan below cost.




 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 »

Amazon launches the International Shopping Experience in the Amazon Shopping App
Posted 19-Apr-2018 08:38


Spark New Zealand and TVNZ to bring coverage of Rugby World Cup 2019
Posted 16-Apr-2018 06:55


How Google can seize Microsoft Office crown
Posted 14-Apr-2018 11:08


How back office transformation drives IRD efficiency
Posted 12-Apr-2018 21:15


iPod laws in a smartphone world: will we ever get copyright right?
Posted 12-Apr-2018 21:13


Lightbox service using big data and analytics to learn more about customers
Posted 9-Apr-2018 12:11


111 mobile caller location extended to iOS
Posted 6-Apr-2018 13:50


Huawei announces the HUAWEI P20 series
Posted 29-Mar-2018 11:41


Symantec Internet Security Threat Report shows increased endpoint technology risks
Posted 26-Mar-2018 18:29


Spark switches on long-range IoT network across New Zealand
Posted 26-Mar-2018 18:22


Stuff Pix enters streaming video market
Posted 21-Mar-2018 09:18


Windows no longer Microsoft’s main focus
Posted 13-Mar-2018 07:47


Why phone makers are obsessed with cameras
Posted 11-Mar-2018 12:25


New Zealand Adopts International Open Data Charter
Posted 3-Mar-2018 12:48


Shipments tumble as NZ phone upgrades slow
Posted 2-Mar-2018 11:48



Geekzone Live »

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



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.