MyRepublic - New Fibre-only ISP

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321 posts

Ultimate Geek
Inactive user

#1152807 13-Oct-2014 13:23

I have a question. I was told in another thread that it's not financially viable for UFB providers to operate in certain areas like Kapiti, where I'm moving to next week, because there's a high initial equipment/backhaul/handover cost and an ongoing cost that wouldn't be covered by just a few customers.

So... if no other providers except Spark are operating in Kapiti because they don't think it's viable, how can you offer it there and make it viable? I checked my address and got the green light to sign up. But as someone pointed out, it's a VF cable area, a relatively small town, so there's probably VF saturation there, so no real hope of a return in the short-medium. Or long, when you consider VF also offer Sky and their total cable package comes in at $50 less than UFB + Sky.

So... I'm all for supporting competition, but how is this possible if all the other ISPs are shying away from Kapiti? Are you buying wholesale? If so, does that affect the promised service? Because I really like what you're offering and your overseas pedigree, but I'm a little reluctant to sign up without knowing what might happen.

:)

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MichaelNZ

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#1152833 13-Oct-2014 13:47

NZCrusader: I applaud MyRepublic for the innovation. I believe in the future it will no longer just be about who offers the lowest price, but rather price to performance and features.
......
I floated the idea several times to Slingshot for performance based enhancements or plans (like custom routing) for gaming purposes.
While I appreciate its probably a small market for enthusiasts, it is nice to see an ISP make an attempt in unexplored territory.

I am surprised with the amount of negativity. Granted there is limited detail, but hey... its not like any other ISPs reveal detailed information (if any).

Internet access is a low margin service with costs which are pretty similar across the board. IE: Whether you're ISP A, B or C, you're paying a pretty similar price for input costs (The largest of which is International bandwidth, electricity, depreciation, rent and wages)...

So when we get a new player come along and claim something revolutionary, it's quite appropriate to wonder whether they are going to deliver. Over promising and under delivering (as a marketing strategy) has been used several times before in this tight and competitive market.

MyRepublic has the added burden of having allegedly spent all this money on hardware and other setup costs which is now incurring massive depreciation which they are going to have to recover from somewhere. The existing players have a big advantage here as they have existing client base income to meet the capex costs.

A previous comparison with 2degrees is not a good one. At the time 2degrees entered the market, there were only 2 players who were working with high margins. There is a very high bar to become a mobile carrier (especially if operating with own network), a lot higher then to setup an ISP. The Internet market has several players and margins are a lot lower, in other words prices are competitive.

It's my bet they will quickly become just another player selling the same stuff at the same price.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

PhantomNVD

2619 posts

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#1152854 13-Oct-2014 14:07

MichaelNZ: It's my bet they will quickly become just another player selling the same stuff at the same price.

Fine, your opinion and point has clearly been stated (and argued against) for at least the last three pages... can we move on from this now please?

I for one am keen to see new ideas and enthusiasm enter our market, glad that another international player has come to try 'shake things up' and happy to see how it pans out over time. Lets now give them their chance and SUPPORT the effort and expense they are making, as even IF it goes the way you say, they WILL be making a 'best effort' to do something different, and have their go.

MichaelNZ

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#1152868 13-Oct-2014 14:19

PhantomNVD:
I for one am keen to see new ideas and enthusiasm enter our market, glad that another international player has come to try 'shake things up' and happy to see how it pans out over time. Lets now give them their chance and SUPPORT the effort and expense they are making, as even IF it goes the way you say, they WILL be making a 'best effort' to do something different, and have their go.

So far nobody has adequately explained what this market needs that is not being met already.

If I hopped everytime some new ISP offered me a marketing line like this, I'd be changing every month.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

networkn

Networkn
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#1152878 13-Oct-2014 14:27

MichaelNZ:
PhantomNVD:
I for one am keen to see new ideas and enthusiasm enter our market, glad that another international player has come to try 'shake things up' and happy to see how it pans out over time. Lets now give them their chance and SUPPORT the effort and expense they are making, as even IF it goes the way you say, they WILL be making a 'best effort' to do something different, and have their go.

So far nobody has adequately explained what this market needs that is not being met already.

If I hopped everytime some new ISP offered me a marketing line like this, I'd be changing every month.

So the answer is no, you can't move on now that you have made your opinion and opposition to this ISP start up heard, then? What exactly is it you want? Do you want them to shut their doors because YOU don't see the value?

If you don't see the value, don't be a customer, simple.

No reason for you to continue to flog your dead horse!

eXDee

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#1152883 13-Oct-2014 14:32

MichaelNZ:
PhantomNVD:
I for one am keen to see new ideas and enthusiasm enter our market, glad that another international player has come to try 'shake things up' and happy to see how it pans out over time. Lets now give them their chance and SUPPORT the effort and expense they are making, as even IF it goes the way you say, they WILL be making a 'best effort' to do something different, and have their go.

So far nobody has adequately explained what this market needs that is not being met already.

If I hopped everytime some new ISP offered me a marketing line like this, I'd be changing every month.

So don't buy into it then.

The more competition the better, and even attempts to innovate and differentiate are valuable in the marketplace, whether you believe it to be or not.

NZCrusader

646 posts

Ultimate Geek

#1152901 13-Oct-2014 14:57

MichaelNZ:
NZCrusader: I applaud MyRepublic for the innovation. I believe in the future it will no longer just be about who offers the lowest price, but rather price to performance and features.
......
I floated the idea several times to Slingshot for performance based enhancements or plans (like custom routing) for gaming purposes.
While I appreciate its probably a small market for enthusiasts, it is nice to see an ISP make an attempt in unexplored territory.

I am surprised with the amount of negativity. Granted there is limited detail, but hey... its not like any other ISPs reveal detailed information (if any).

Internet access is a low margin service with costs which are pretty similar across the board. IE: Whether you're ISP A, B or C, you're paying a pretty similar price for input costs (The largest of which is International bandwidth, electricity, depreciation, rent and wages)...

So when we get a new player come along and claim something revolutionary, it's quite appropriate to wonder whether they are going to deliver. Over promising and under delivering (as a marketing strategy) has been used several times before in this tight and competitive market.

MyRepublic has the added burden of having allegedly spent all this money on hardware and other setup costs which is now incurring massive depreciation which they are going to have to recover from somewhere. The existing players have a big advantage here as they have existing client base income to meet the capex costs.

A previous comparison with 2degrees is not a good one. At the time 2degrees entered the market, there were only 2 players who were working with high margins. There is a very high bar to become a mobile carrier (especially if operating with own network), a lot higher then to setup an ISP. The Internet market has several players and margins are a lot lower, in other words prices are competitive.

It's my bet they will quickly become just another player selling the same stuff at the same price.

So what if they do. How is that hurting you?

Businesses have to change all the time to be profitable in any market.

MichaelNZ:
So far nobody has adequately explained what this market needs that is not being met already.

If I hopped everytime some new ISP offered me a marketing line like this, I'd be changing every month.

Triple play is where it is heading and many players are trying all sorts of approaches to service this market.

Besides, even if every area of the market is being addressed, then what is the issue with having competition?

So far in the coms market, we have seen competition change the landscape dramatically time and time again.
- Line speeds offered.
- Data caps.
- Unlimited plans.
- Package discounts.
- Naked DSL / UFB.
- VoIP services.
- Beginning of video services.
- Next... who knows?

Only a few years ago data caps were small, costs were higher, latency was higher, no naked DSL options, little / no VoIP for home, no IPTV (stuck with FTA or Sky).

Probably going to get a negative response to this, but to be honest you have provided nothing but negative statements and subsequently have added nothing useful to this thread.

I cannot quite understand how or why you are opposed to competition. We can only guess how / why you come to the odd conclusions you find your self presenting.

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Whinery

104 posts

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#1153014 13-Oct-2014 16:55

ckc: I have a question. I was told in another thread that it's not financially viable for UFB providers to operate in certain areas like Kapiti, where I'm moving to next week, because there's a high initial equipment/backhaul/handover cost and an ongoing cost that wouldn't be covered by just a few customers.

So... if no other providers except Spark are operating in Kapiti because they don't think it's viable, how can you offer it there and make it viable? I checked my address and got the green light to sign up. But as someone pointed out, it's a VF cable area, a relatively small town, so there's probably VF saturation there, so no real hope of a return in the short-medium. Or long, when you consider VF also offer Sky and their total cable package comes in at $50 less than UFB + Sky.

So... I'm all for supporting competition, but how is this possible if all the other ISPs are shying away from Kapiti? Are you buying wholesale? If so, does that affect the promised service? Because I really like what you're offering and your overseas pedigree, but I'm a little reluctant to sign up without knowing what might happen.

:)

I don't know how the other guys haven't figured it out. It wasn't hard. The head of MyRepublic here is a non-technical lawyer. So he spent all his time talking money with suppliers, getting us deals that nobody else has. Maybe the other ISPs just don't know how to ask nicely.

We'll win against VF, once we get people like yourself using us and telling everyone what you think about us. We just need to get people on right now. Hence our 3 month free trial, no long term lock in.

Regards,
Marc Whinery
Senior Product Manager, MyRepublic

MichaelNZ

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#1153028 13-Oct-2014 17:15

Whinery:
I don't know how the other guys haven't figured it out. It wasn't hard. The head of MyRepublic here is a non-technical lawyer. So he spent all his time talking money with suppliers, getting us deals that nobody else has. Maybe the other ISPs just don't know how to ask nicely.

That's a bit presumptious. "If I had a dollar for everytime..." an ISP claimed to have a deal or some sort of special knowledge (allegedly) noone else has.

I have news for your "non technical lawyer" friend. Others have "special deals" going down too. It's all part of the negotiating ploys used between ISP's and carriers.

It's not the "other guys haven't worked it out", rather, it's that some of them wish to maintain the illusion (to their clients) that bandwidth transit is expensive, so they keep their deals quiet. There is a price which is too low, one just right and too expensive. Much like Goldilocks and the 3 bears. Whether it's the wholesale carrier or the end retail ISP their aim to have as many clients as possible in the later category and it's the client's aim (hopefully) to try and get themselves into the middle category. So there is certainly room for negotiation but this doesn't mean an awesome special (for one customer only) is reality.

A good comparison is an airplane. Some seats will be sold for a high price (last minute bookings) and some for a low price (specials or advanced bookings). The seats are the same so why the difference?

The airplane costs $x to get off the ground whether it's full or just a handful of passengers. The marginal difference in cost is very little either way.

Same with a carrier's cables and network. Most of it's fixed costs.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

ckc

321 posts

Ultimate Geek
Inactive user

#1153182 13-Oct-2014 22:10

^ I actually don't care about that stuff. All I care about is that the service is a viable alternative in a pretty closed off market. They're around the same price, there's very little risk if the service is awful. I can't imagine that they'd have a business plan that goes:

1) Plough buttloads of money into UFB without really knowing how to provide the service
2) ?????
3) Profit

It's worth a try.

NonprayingMantis

6434 posts

Uber Geek

#1153203 13-Oct-2014 23:18

I don't want to bag new providers, but I really don't get this whole the fibre tv thing. It seems weird.

on the site it says "access to over 30 channels of entertainment"

yet when I looked at the list, a bunch of them (not all of course, but a good number) are already available in NZ without any sort of trickery, just by having broadband. So how does having Fibre TV 'grant you access'?

http://www.myrepublic.co.nz/add-ons/fibre-tv

list includes services like:

Premierleague pass
NFL
iHeart Radio
Spotify
BBC Radio
Pandora
Jango

All of the above are available for anyone in NZ to use. Seems pretty misleading to me that Myrepublic are implying that you can't access them without Fibre TV (which costs $15/month on top of your normal broadband fees) with sentences like:
Discover endless hours of music Stream millions of songs and discover new favourites with the help of Fibre TV. Featuring hit music recommendation service Pandora Radio, Fibre TV invites you to broaden your music tastes.

MichaelNZ

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#1153212 13-Oct-2014 23:24

NonprayingMantis:
All of the above are available for anyone in NZ to use. Seems pretty misleading to me that Myrepublic are implying that you can't access them without Fibre TV (which costs $15/month on top of your normal broadband fees) with sentences like:
Discover endless hours of music Stream millions of songs and discover new favourites with the help of Fibre TV. Featuring hit music recommendation service Pandora Radio, Fibre TV invites you to broaden your music tastes.

Here is a service I might buy from them if I'm buying access to the channel, not just a US proxy server.

If the former:

1. Is this available as a standalone?

2. Is the content DRM'ed? If so, major drawback. I use Linux and Adobe stopped supporting flash for Linux after 11.2, which means a lot of sites (thankfully not Youtube though) don't work.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

NonprayingMantis

6434 posts

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#1153216 13-Oct-2014 23:33

MichaelNZ:
NonprayingMantis:
All of the above are available for anyone in NZ to use. Seems pretty misleading to me that Myrepublic are implying that you can't access them without Fibre TV (which costs $15/month on top of your normal broadband fees) with sentences like:
Discover endless hours of music Stream millions of songs and discover new favourites with the help of Fibre TV. Featuring hit music recommendation service Pandora Radio, Fibre TV invites you to broaden your music tastes.

Here is a service I might buy from them if I'm buying access to the channel, not just a US proxy server.

If the former:

1. Is this available as a standalone?

2. Is the content DRM'ed? If so, major drawback. I use Linux and Adobe stopped supporting flash for Linux after 11.2, which means a lot of sites (thankfully not Youtube though) don't work.

It's not content. All you are buying for $15/m is the ability to access the sites. My point was that many of these sites are already accessible in NZ without paying anything extra to your ISP. (Or do MyRepublic block them if you don't pay the extra $15 to 'enable ' them?)

MichaelNZ

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#1153220 13-Oct-2014 23:41

NonprayingMantis:
It's not content. All you are buying for $15/m is the ability to access the sites. My point was that many of these sites are already accessible in NZ without paying anything extra to your ISP. (Or do MyRepublic block them if you don't pay the extra $15 to 'enable ' them?)

Oh, how underwhelming... For a moment it looked like they had something that would interest me.

I've had another look at their site and 10c per minute national calls and an arbitary limit of 1 phone line? Local call charges for business? That sounds pretty dark ages compared with 2talk.

http://www.myrepublic.co.nz/add-ons/voice

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

ckc

321 posts

Ultimate Geek
Inactive user

#1153229 13-Oct-2014 23:58

I have no idea why you're expecting matured package offerings from a provider that's just gone live.

Having said that, Fibre TV is a bit of a laugh. How much is Unblock.us for smart DNS and VPN? US$5?

$15 for a smart DNS, then? Callplus offer that stuff for free. They'll have to be smarter than that, or be clearer in what they're offering, if they're looking to target the gamer demo.

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