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Topic # 63633 1-Jul-2010 09:42
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Just received this:

1 July 2010
Media Statement
UFB Model Amendments Announced
Communications and Information Technology Minister Steven Joyce today announced amendments to the model for the Ultra-Fast Broadband (UFB) Initiative.
“Following the extensive feedback that Crown Fibre Holdings (CFH) has received from the telecommunications industry and UFB Initiative respondents after receiving its first round of bids in the UFB tender process, certain revisions to the UFB model have been agreed by Cabinet this week,” says Mr Joyce.
“These amendments will further improve the business model for local fibre companies and facilitate additional co-investment from the private sector”.
A number of respondents to the Crown’s initial Invitation to Participate (ITP) advised they support a move to offering open access at Layer 2 of the ultra-fast broadband network as well as Layer 1.  This feedback has been echoed across the industry.  In particular, the service providers who will be purchasing ultra-fast broadband services and in turn selling them to consumers have said they support such a move.
“We are talking about a long-lasting investment that will fundamentally shape the future of the New Zealand telecommunications industry,” said Mr Joyce. 
“Careful consideration has been given to the issue of open access.  It is important that the open access model supports competitive outcomes, and that it is both suitable and attractive to the industry and private-sector investors.”
The ITP has been revised to ensure that ultra-fast broadband will be provided at both Layers 1 and 2 on an open access basis.
In addition, the Government is changing the ITP model to avoid burdening infant businesses investing in emerging technologies with inappropriate regulation. Prices will be set by CFH through negotiations following the tender process, and there will be limited scope for regulatory intervention to alter those prices while the industry is still immature. However, there will be safeguards in place to ensure that effective competition will develop.
“Based on today’s announcement, respondents to the original ITP will be invited to provide revised proposals based on the modified UFB model and regulatory regime to CFH.  CFH will contact bidders about the process directly,” said Mr Joyce.
CFH is also approaching the industry on UFB architectural options and UFB product specifications to obtain views on these matters.  These discussions will occur during July and August 2010.
CFH will be making recommendations on preferred investment partners to Ministers by October 2010. 
Media contact: Anita Ferguson 021 243 1623
Questions and answers:
1.    What is meant by open access?
Open access is a key principle underlying the UFB Initiative, and means that ultra-fast broadband must be made available to any service provider that seeks access to it on equal terms.  This will in turn enable a vibrant and competitive service provider market.  It is critical that the networks built provide the highest levels of interoperability with other networks and are future proofed.  Local Fibre Companies (LFCs) will be required to deal with the market in a fair and equitable manner, providing for equality of access and allow consumers to switch easily between providers.  Specifically, LFCs will be required to sell services to a “non-discrimination” standard.
2.    What are Layer 1 services?
Services that operate at Layer 1 of the Open Systems Interconnection Model of network architecture.  Layer 1 is normally associated with passive fibre optic network infrastructure.
3.    What are Layer 2 services?
Services that operate at Layer 2 of the Open Systems Interconnection Model of network architecture.  Layer 2 is normally associated with active fibre optic network infrastructure (the electronics that light fibre).

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  Reply # 347006 1-Jul-2010 14:56
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I hope Layer 2 doesn't have to include PPP and logins etc, because that seems to be a common cause of CPE faults. A provider should be able to upgrade the ONT firmware or reset it to factory default without having to setup anything over again. And having different local fibre cos all using different types of ONT/OLT could get confusing for ISPs that could end up having to follow 10 different brands of equipment.

I also hope that Layer 2 is required to be offered with a few options, eg choices between Ethernet and PON, choices of contention ratio. If customers want really expensive 1:1 service or the cheapest/slowest service possible, then they should be able to choose what is most appropriate for them. This should apply to apartment buildings as well as single dwelling units, acknowledging that apartment users need as much choice as suburban customers. The problem is that apartment buildings would generally require a shared ONT in the basement, potentially limiting the choice of services and also whether the building wiring is capable of Ethernet or VDSL2.

Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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  Reply # 347262 2-Jul-2010 12:25
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From Communications Day news:
Under the new rules, which Joyce said have been agreed by Cabinet, companies wanting to partner the government must now submit plans for lit (Layer 2) as well as dark fibre (Layer 1). This is unlikely to complicate matters as most bidders already have Layer 2 factored into their plans.

The government also tidied UFB regulation cutting some red-tape worrying potential investors. Joyce said fibre prices will now be “set by CFH (Crown Fibre Holdings) through negotiations following the tender process.” There will be “limited scope” for regulatory intervention to alter those prices. He said further safeguards will make sure the resulting broadband market is competitive.

Bit more info than the Ministers press release. Will be interesting to see how backhaul develops.

Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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