Telecom monopoly - does it still exist?

Forums › ICT Policies and Regulation › Telecom monopoly - does it still exist?

rossmnz

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#112277 3-Dec-2012 16:10

If so, why/how?

If not why not?

Interested in robust debate.

Had the forced split been in name only?

The force is strong with this one!

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#726309 3-Dec-2012 16:48

I'd love to debate your question but I don't understand it.

richirvine

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#726312 3-Dec-2012 16:52

Might help if you elaborated a bit on your own POV and why you think it's a good debate to have? Ta

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rossmnz

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#726313 3-Dec-2012 16:52

I disagree. You clearly have a better grasp of IT than most

The force is strong with this one!

robjg63

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#726317 3-Dec-2012 16:59

Perhaps you should start by saying what you think Telecom is....

Do you understand what regulations are now in place and what Telecom (as a company) actually is?

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freitasm

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#726319 3-Dec-2012 17:01

rossmnz: I disagree. You clearly have a better grasp of IT than most

Please start telling us YOUR view then we can say YES/NO to it.

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mattwnz

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#726326 3-Dec-2012 17:06

Simply put, no I don't think it does, especially since they separated. There is no requirement to use telecom these days, and the telcom market is now very competitive.
However I think they are monopolies/duopolies in other areas of the NZ economy that are cuasing problems with high prices, such as our building sector, supermarkets, pay tv/media content etc. Comes with NZ being a small population in a remote region of the world.

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#726327 3-Dec-2012 17:08

Ok, biting...

No, there's no monopoly. They are not the larger mobile operator around, they don't provide UFB while others do, they don't set prices for local loop.

So, what's your point?

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ubergeeknz

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#726334 3-Dec-2012 17:21

I'd say the split has done a lot for competition, and there no longer exists any Telecom "monopoly" or enduring competitive advantage in the market for telephone/internet services.

Telecom still have the advantage of having started out with most of the customers, but the barriers to entry in terms of infrastructure investment have been largely removed by enforcing set wholesale pricing for connections (ie. Chorus provided POTS/ADSL), as evidenced by the number of small telcos/ISPs that have popped up in recent years. The other major hurdle was to allow unbundling - and the success of this is evident from the number of telco/ISP's offering services from their own network.

Does that answer your question?

Behodar

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#726336 3-Dec-2012 17:24

Doesn't Telecom Wholesale still have a "monopoly" for customers served from cabinets and smaller exchanges? I know that ISPs are able to install their own gear but the impression I got is that it's not cost-effective.

sbiddle

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#726344 3-Dec-2012 17:30

Behodar: Doesn't Telecom Wholesale still have a "monopoly" for customers served from cabinets and smaller exchanges? I know that ISPs are able to install their own gear but the impression I got is that it's not cost-effective.

It's not cost effective purely because of the small number of customers. A typical cabinet will serve ~288 premises, if you've got 10% of the market that's 28 customers. Factor in the cost of a ISAM/DSAM/MSAN and the cost of regulated backhaul (which is a rip off but the Commerce Commission set the pricing) and it's very obvious why this makes no sence if you're a business wanting to make a profit.

chevrolux

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#726358 3-Dec-2012 18:02

sbiddle:
Behodar: Doesn't Telecom Wholesale still have a "monopoly" for customers served from cabinets and smaller exchanges? I know that ISPs are able to install their own gear but the impression I got is that it's not cost-effective.

It's not cost effective purely because of the small number of customers. A typical cabinet will serve ~288 premises, if you've got 10% of the market that's 28 customers. Factor in the cost of a ISAM/DSAM/MSAN and the cost of regulated backhaul (which is a rip off but the Commerce Commission set the pricing) and it's very obvious why this makes no sence if you're a business wanting to make a profit.

Doesn't Chorus own that gear? I thought Telecom Wholesale was no more. I also thought all providers can serve their customers out of a cabinet for the same price.

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#726366 3-Dec-2012 18:22

That's Chorus. There's no Telecom Wholesale.

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johnr

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#726367 3-Dec-2012 18:24

I wish people would do a little bit of research before asking questions like this

sbiddle

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#726375 3-Dec-2012 18:39

chevrolux:
sbiddle:
Behodar: Doesn't Telecom Wholesale still have a "monopoly" for customers served from cabinets and smaller exchanges? I know that ISPs are able to install their own gear but the impression I got is that it's not cost-effective.

It's not cost effective purely because of the small number of customers. A typical cabinet will serve ~288 premises, if you've got 10% of the market that's 28 customers. Factor in the cost of a ISAM/DSAM/MSAN and the cost of regulated backhaul (which is a rip off but the Commerce Commission set the pricing) and it's very obvious why this makes no sence if you're a business wanting to make a profit.

Doesn't Chorus own that gear? I thought Telecom Wholesale was no more. I also thought all providers can serve their customers out of a cabinet for the same price.

They can do. But the business case will never ever stack up.

if you look at my figures above the wholesale cost of the UCLL copper, space in the cabinet, and backhaul could easily cost somewhere in the vicinity of $1500 - $2000 per month depending on your backbaul requirements. These prices are fully regulated by the Commerce Commisson.

It doesn't take a rocket scientist to realise if you're paying $53 per month in wholesale costs (let alone the cost of the hardware), assuming you can get 28 customers, that there is no margin when at that price you can just use wholesale UBA.

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#726377 3-Dec-2012 18:43

chevrolux: Doesn't Chorus own that gear? I thought Telecom Wholesale was no more.

freitasm: That's Chorus. There's no Telecom Wholesale.

Telecom Wholesale seems to still exist (either that or someone forgot to take their website down!) but after looking around it does look like the gear moved across to Chorus. I didn't realise that that had happened and I stand corrected.

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