Heavy government intervention key to fast, cheap broadband (NYTimes)

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Screeb

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Ultimate Geek

#31346 13-Mar-2009 20:09

A New York Times blog post investigating why the US is lagging behind other countries in broadband (yes, the US complains about their broadband - meanwhile, most people in NZ would love to have broadband as good as in the US - and some people here still say we shouldn't complain!):

http://bits.blogs.nytimes.com/2009/03/12/the-broadband-gap-why-do-they-have-more-fiber/

In the paradises of broadband — Japan, South Korea and Sweden — nearly everyone can surf far faster and far cheaper than anyone in the United States. What is their secret sauce and how can we get some? The short answer is that broadband deployment in those countries was spurred by a combination of heavy government involvement, subsidies and lower corporate profits

Ragnor

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#201106 13-Mar-2009 21:04

You mean like...

Govt reiterates broadband spend-up commitment
http://www.stuff.co.nz/technology/1758943

Joyce: New Zealand needs fibre; govt $1.5 billion will be spent
http://www.nbr.co.nz/article/joyce-new-zealand-needs-fibre-govt-15-billion-will-be-spent-63818

Super-fast broadband plan given go-ahead
http://www.nzherald.co.nz/technology/news/article.cfm?c_id=5&objectid=10558982

FX Networks completes $17m fibre rollout
http://computerworld.co.nz/news.nsf/netw/A96E24A511479705CC257569007CE12F

Screeb

698 posts

Ultimate Geek

#201111 13-Mar-2009 21:19

Yes... I'm just reinforcing the point people like you seem to miss.

Ragnor

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#201116 13-Mar-2009 21:40

I don't think anyone missed the fact that under the previous government and the previous Telecom leadership very little progress was made.

However there are very positive signs from the new government and the new leadership in Telecom and other telcos so it's not all doom and gloom even in the current tough economic times.

Screeb

698 posts

Ultimate Geek

#201123 13-Mar-2009 22:01

Ragnor: I don't think anyone missed the fact that under the previous government and the previous Telecom leadership very little progress was made.

There are many people who still disagree with the NZ government spending money on FTTH.

bbman

646 posts

Ultimate Geek

#201125 13-Mar-2009 22:07

Ragnor: I don't think anyone missed the fact that under the previous government and the previous Telecom leadership very little progress was made.

However there are very positive signs from the new government and the new leadership in Telecom and other telcos so it's not all doom and gloom even in the current tough economic times.

Agreed the New Govt has a few more clues and Telecom is going nuts investing under a new forward thinking and customer focused management, making up for TG's reign of nothing.

The fibre to cabinet program is making a massive difference to broadband speeds now its in full swing. VDSL is only round the corner from cabinet as well.

The Govt's $1.5 bill is better spent increasing our international bandwidth thats going to our biggest problem in the near future,, Fibre to home is a $10 bill + worth so no one is interested in that and with VDSL coming to a cabinet soon not needed yet

www.ultimatebroadband.co.nz
Delivering better broadband services

UFB fibre, Rural fibre on EA networks, RBI wireless, Ruralnet & Ultra wireless, wireless networks

Screeb

698 posts

Ultimate Geek

#201130 13-Mar-2009 22:22

bbman: The Govt's $1.5 bill is better spent increasing our international bandwidth

It doesn't take $1.5 billion to do that.

Fibre to home is a $10 bill + worth

No it's not. Read the Network Strategies report.

so no one is interested in that

That's why the government is spending the money. The exact reason outlined in the article this thread is about.

and with VDSL coming to a cabinet soon

VDSL from just a small handful of telcos in a small number of areas. It's not going to cover anywhere near as many houses as the FTTH network will (especially at fast speeds).

not needed yet

The FTTH network isn't going to pop up tomorrow. By the time it's in place, VDSL2 will be outdated.

Ragnor

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#201134 13-Mar-2009 23:21

The last mile POTS copper needs to go at some stage, the sooner we get started the better. VDSL2 is simply eeking out a bit more life of the last mile copper.

Kordia only needs $200-400 million in funding for the NZ-AU leg of Pipes PPC cable.

Australia already had 4 other AU-US cables, and NZ-US pricing from SXC is the same as AU-US pricing. Will Pipe's cable have any real effect on pricing?

This is a solid recent opinon piece on SXC
http://www.nbr.co.nz/opinion/chris-keall/meet-bad-guy

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

Screeb

698 posts

Ultimate Geek

#201145 14-Mar-2009 02:16

Australia already had 4 other AU-US cables, and NZ-US pricing from SXC is the same as AU-US pricing. Will Pipe's cable have any real effect on pricing?

This is a solid recent opinon piece on SXC
http://www.nbr.co.nz/opinion/chris-keall/meet-bad-guy

Those other "AU-US" cables are: AJC, which goes to Japan, via Guam (and I can only find one high-capacity Guam-US direct link - VSNL Transpacific), SeeWeMe-3, which is Perth/Singapore, Endeavour, which is "new", and which Telstra built for their own use, and the fourth of course is SCC.

I also like how, apparently (according to SCC's arguments in the article), if SCC's pricing isn't completely, unapologetically, ridiculous, then there's no need for another cable.

“If you compare intercontinental capacity cost, then traffic between Australia/NZ is often tens more expensive than traffic between Europe and America”, says Mr Budde

...

Against this, Matt Crockett, head of Telecom Wholesale - who also sits on SCC’s board - highlights that Australasia is further from Europe than the US

Yes, but not quite ten times further... (not that it would even cost ten times as much to transport data if it were). Oh that Matt Crockett, always a pal.

Ragnor

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#201184 14-Mar-2009 12:27

Did you read this paragraph in that article, I think this makes more of a difference than the physical distance..

There’s also the issue of scale. When Telecom Wholesale (or another SCC reseller) buys domestic backhaul in the US - necessary to complete the loop between where the SCC lands in Seattle and a peering centre in San Jose - it’s not in a strong bargaining position compared to telcos from countries with much higher populations.

Screeb

698 posts

Ultimate Geek

#201211 14-Mar-2009 16:11

Yes, I did. Economies of scale doesn't drop the price ten times either.