Callplus buy Orcon.

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

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#1071636 21-Jun-2014 13:01

Depends if they purchased the company or some of it's assets. However it sounds like they purchased the company as a whole, which would include everything. Otherwise a company could regally sell itself to shell companies and never pay any bills.

JokezNZ

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#1071710 21-Jun-2014 14:30

Yes when you buy out an entity the liabilities come with it

Ragnor

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#1072033 22-Jun-2014 13:24

gehenna: One company owning 3 ISP's. How's that good for customers?

There's no shortage of other ISP's... and new ones starting up all the time.

Yabanize

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#1072070 22-Jun-2014 15:06

Ragnor:
gehenna: One company owning 3 ISP's. How's that good for customers?

There's no shortage of other ISP's... and new ones starting up all the time.

Okay, Lets say 3 of the main ones, other ones are small

Zeon

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#1072100 22-Jun-2014 17:11

Yabanize:
Ragnor:
gehenna: One company owning 3 ISP's. How's that good for customers?

There's no shortage of other ISP's... and new ones starting up all the time.

Okay, Lets say 3 of the main ones, other ones are small

Doesn't matter. A small ISP can access a whole region to provide services with the current offerings so if there is a market opportunity, they can open up and compete. I think this is probably positive in some ways - market consolidation

Speedtest 2019-10-14

scottr

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#1072217 22-Jun-2014 20:19

Rageykiwi: I wonder if this would mean slingshot fibre would be crossing over to ultra fast fibre the soon branded "giganet" from next month.Currently callplus only offers plans to business customers on ultra fast fibre.I would like to see another major ISP on ultrafast.

Hi, it won't be that easy unfortunately - CallPlus and Orcon run completely separate fulfil, assure and billing systems. Slingshot will do their own build to support UFF/Enable/Northpower, but leveraging off the work already completed for CallPlus Business.

Cheers,

Scott

quakeguy

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#1072258 22-Jun-2014 22:19

deadlyllama: Now if only FullFlavour or BigPipe would sell UFB in Whanganui...

Snap will be there this month.

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sorceror

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#1072827 23-Jun-2014 17:25

Zeon:
Yabanize:
Ragnor:
gehenna: One company owning 3 ISP's. How's that good for customers?

There's no shortage of other ISP's... and new ones starting up all the time.

Okay, Lets say 3 of the main ones, other ones are small

Doesn't matter. A small ISP can access a whole region to provide services with the current offerings so if there is a market opportunity, they can open up and compete. I think this is probably positive in some ways - market consolidation

Not really. While that may be true in other markets where a small company can innovate, the consumer ISP game is purely a numbers one. If you have more subscribers you not only make more profit but you also have much lower input costs (which in turn should give you a superior product... emphasis on should). Just look at how broadband prices have been dropping even over the course of this year - soon the smaller ISPs simply won't be able to sustain themselves if they want to keep being competitive.

Sideface

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#1072895 23-Jun-2014 20:11

Three days on - and there is still NO mention of the takeover on the Orcon, Slingshot or Flip web sites.

Sideface

networkn

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#1072915 23-Jun-2014 20:48

Sideface: Three days on - and there is still NO mention of the takeover on the Orcon, Slingshot or Flip web sites.

Hi,

Nothing will be formally announced until the sale is unconditional.

Ragnor

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#1073594 24-Jun-2014 17:31

sorceror:

Not really. While that may be true in other markets where a small company can innovate, the consumer ISP game is purely a numbers one. If you have more subscribers you not only make more profit but you also have much lower input costs (which in turn should give you a superior product... emphasis on should). Just look at how broadband prices have been dropping even over the course of this year - soon the smaller ISPs simply won't be able to sustain themselves if they want to keep being competitive.

If anything for our market size there are too many ISP's....

Actrix
Airnet/NowNZ
Callplus/Slingshot/Orcon/Flip
Compass
Full Flavour Media
Inspire
Megatel
Mynxnet
NZ Wireless
Snap
Telecom/BigPipe
Trustpower
Vodafone/Telstraclear
Woosh
Worldnet
WorldXChange/Xnet

.. then more business focuses ISP's:
DTS
ICONZ
Unleash
Vocus/Maxnet/Fyx/Watchdog
Voyager

.. more that I have forgotten...

mattwnz

20164 posts

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#1073604 24-Jun-2014 17:56

Ragnor:
sorceror:

Not really. While that may be true in other markets where a small company can innovate, the consumer ISP game is purely a numbers one. If you have more subscribers you not only make more profit but you also have much lower input costs (which in turn should give you a superior product... emphasis on should). Just look at how broadband prices have been dropping even over the course of this year - soon the smaller ISPs simply won't be able to sustain themselves if they want to keep being competitive.

If anything for our market size there are too many ISP's....

Actrix
Airnet/NowNZ
Callplus/Slingshot/Orcon/Flip
Compass
Full Flavour Media
Inspire
Megatel
Mynxnet
NZ Wireless
Snap
Telecom/BigPipe
Trustpower
Vodafone/Telstraclear
Woosh
Worldnet
WorldXChange/Xnet

.. then more business focuses ISP's:
DTS
ICONZ
Unleash
Vocus/Maxnet/Fyx/Watchdog
Voyager

.. more that I have forgotten...

There are probably far more than that too, I can think of quite a number of small players I have heard of. But many are tiny. In my opinion, unless the ISP has a reasonable customer base, then it will be very difficult for a smaller player to compete on price, as these larger ones make their money on quantity of connections. So the fewer large ISPs their are, the smaller the competition is, as you will have fewer ISPs with large customer bases, and due to economies of scale they can charge less than smaller players, effectively shutting smaller players out of the market. It is then very hard for a new ISP to grow larger as they will find it difficult to compete on price. So smaller players would have to grow fast to compete. In a way this is what happened to supermarkets in NZ, there used to be quite a few different companies many years ago, but over time the market consolidated to two main players.

richms

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#1073606 24-Jun-2014 18:00

And not everyone buys from places that are soley competing on price. So just because the cheap ones can run a duopoly or triopoly at whatever price they choose there will still be plenty of people that want proper service and a different offering from the smaller ISPs, just like loads of people shop at new world, faro and nosh, and everyone doesnt go to pak n save for a cheap aweful shopping experiance.

Richard rich.ms

sorceror

163 posts

Master Geek

#1073757 24-Jun-2014 22:10

richms: And not everyone buys from places that are soley competing on price. So just because the cheap ones can run a duopoly or triopoly at whatever price they choose there will still be plenty of people that want proper service and a different offering from the smaller ISPs, just like loads of people shop at new world, faro and nosh, and everyone doesnt go to pak n save for a cheap aweful shopping experiance.

People shop at places like faro and nosh because they offer different products. Internet is a commodity, it's only a matter of time before people realise that.

Sure some people might want to talk to a friendly knowledgable person when they ring up the support line, but in my opinion if a user has to call support the ISP has already failed. All it will take is for one ISP to get their act together and offer a cheap no frills service that works and people will come in droves - see BigPipe (although I'm not too sure on the last part for them, but they've got the right idea)

Yabanize

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#1073760 24-Jun-2014 22:12

sorceror:
richms: And not everyone buys from places that are soley competing on price. So just because the cheap ones can run a duopoly or triopoly at whatever price they choose there will still be plenty of people that want proper service and a different offering from the smaller ISPs, just like loads of people shop at new world, faro and nosh, and everyone doesnt go to pak n save for a cheap aweful shopping experiance.

People shop at places like faro and nosh because they offer different products. Internet is a commodity, it's only a matter of time before people realise that.

Sure some people might want to talk to a friendly knowledgable person when they ring up the support line, but in my opinion if a user has to call support the ISP has already failed. All it will take is for one ISP to get their act together and offer a cheap no frills service that works and people will come in droves - see BigPipe (although I'm not too sure on the last part for them, but they've got the right idea)

Yeah, Except alot of things they ring out about are not the ISP's fault, such as their internet dropping out or being slow because of bad wiring etc

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