2degrees buys Orcon ...

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › 2degrees buys Orcon ...

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#1042537 12-May-2014 18:01

Just remember the good ol' days when it was Orcon who was buying up every man and his dog (for the record, how many ISPs did they buy up in the good days of dial up?).

mattwnz

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#1042557 12-May-2014 18:34

nigelj: Just remember the good ol' days when it was Orcon who was buying up every man and his dog (for the record, how many ISPs did they buy up in the good days of dial up?).

That was when it was still government owned. I don't know what business the government had in owning an ISP in the first place.

blakamin

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#1042559 12-May-2014 18:37

bwahaha... "Bill Bennett"

I'll shut up now.

nigelj

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#1042572 12-May-2014 18:50

mattwnz:
nigelj: Just remember the good ol' days when it was Orcon who was buying up every man and his dog (for the record, how many ISPs did they buy up in the good days of dial up?).

That was when it was still government owned. I don't know what business the government had in owning an ISP in the first place.

I was refering to the days before Kordia owned it (i.e. when Seeby Woodhouse still owned Orcon), although yes, I do recall the owned-by-Kordia Orcon snapping up a couple, the majority seemed to be pre-07 though.

eXDee

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#1042614 12-May-2014 20:08

AFAIK 2degrees uses Snap for some of their transit. If 2deg buys any ISP - im assuming this would change?

jnimmo

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#1042734 13-May-2014 07:15

Orcon wouldn't be up to providing nationwide infrastructure for 2degrees

I think it would be a silly move to buy Orcon, profit margins for residential connections aren't huge. Fixed line is becoming increasingly irrelevant. Would make more sense for them to setup an ISP from scratch I think - I don't know what Orcon's back office business processes are like but 2dg model would require them to be very automated allowing self service etc.

EDIT - Looks like Orcon have been busy putting gear in exchanges since I last looked at the list. I take that first comment back

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Kyanar

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#1042803 13-May-2014 09:42

mattwnz:
nigelj: Just remember the good ol' days when it was Orcon who was buying up every man and his dog (for the record, how many ISPs did they buy up in the good days of dial up?).

That was when it was still government owned. I don't know what business the government had in owning an ISP in the first place.

The government didn't own an ISP. Kordia, a State Owned Enterprise which acts in a commercial manner completely separately from the government, made the commercial decision to buy an ISP. There's a massive difference.

eXDee

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#1043119 13-May-2014 16:03

Thread title is misleading, it should be at the very least be prepended with (rumour).

myfullflavour

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#1043141 13-May-2014 17:02

eXDee: Thread title is misleading, it should be at the very least be prepended with (rumour).

Agree

SteveON

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#1043174 13-May-2014 18:51

Sorry ... I've heard it from a good source. A bit premature yes.

whitecd

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#1043240 13-May-2014 20:58

SteveON: So what do you think about this move?

Has anyone yet given any proof on this? Speculation is a filthy practice.

Might as well be saying Telstra Australia is eyeing up Telecom, but hey who didn't know that already...?

My comments do reflect the views of my employer.

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Kyanar

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#1043306 13-May-2014 22:39

whitecd:
SteveON: So what do you think about this move?

Has anyone yet given any proof on this? Speculation is a filthy practice.

Might as well be saying Telstra Australia is eyeing up Telecom, but hey who didn't know that already...?

That's redundant. Telstra is short for "Telecom Australia"

whitecd

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#1043311 13-May-2014 22:46

Kyanar:
whitecd:
SteveON: So what do you think about this move?

Has anyone yet given any proof on this? Speculation is a filthy practice.

Might as well be saying Telstra Australia is eyeing up Telecom, but hey who didn't know that already...?

That's redundant. Telstra is short for "Telecom Australia"

Certainly carries more weight than this rubbish

My comments do reflect the views of my employer.

mattwnz

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#1043323 13-May-2014 23:26

Kyanar:

The government didn't own an ISP. Kordia, a State Owned Enterprise which acts in a commercial manner completely separately from the government, made the commercial decision to buy an ISP. There's a massive difference.

Kordia are however accountable to a the government, so they are not like any normal commerical enterprise http://www.teara.govt.nz/en/diagram/32687/accountability-of-state-owned-enterprises . But that is all high complex stuff and political and getting off topic.

mattwnz

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#1043326 13-May-2014 23:31

jnimmo: Fixed line is becoming increasingly irrelevant.

You do realise that a billion dollar plus is currently being spent on building a new fibre fixed line network!

So buying an already established ISP gives them access to this, plus an established customer base. Sure, the margins on normal ISP service's is questionable, but that isn't where the value is. It is in add on services and bundling of services. Fibre will allow pay tv and other services not yet invented to be transmitted. This is why telecom is setting up a paytv online system, because that is the direction some ISPs will be heading. Many people don't want to be bothered changing ISP, so setting up a new ISP and getting new customers is not an easy task, unless you are undercutting the competition, which pushes margins even lower.

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