That's bad and made worse when you consider the paltry $22 million a year Telecom has invested on its rural network over the past 13 years, covering both growth and replacement investment.
Adding insult to injury, Telecom actually receives around $25 million a year in subsidies from the rest of the telecommunications industry for providing this clapped-out service.
rapacious monopoly power
What a steal...
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Comment by tonyhughes, on 13-Dec-2007 12:57
Of course no one bothers to count the investment required (and made) in infrastructure not directly attributable to rural customers, but necessary nonetheless (core services investment and maintenance, billing platforms, mobile network upgrades, and heaps more).
Comment by sbiddle, on 13-Dec-2007 13:47
And your point is? The TSO is functioning perfectly?
I disagree with the TSO however the simple fact is Telecom would be heavily cross subsidising rural customers if it wasn't for this. The sooner rural customers pay more for their phone service than a metropolitan customer the better we'll all be. The Commerce Commission frown upon cross subsidies yet the TSO effectively enforces them.
Comment by KiwiOverseas66, on 14-Dec-2007 00:40
ah yes....Chris Barton - was wondering where he had gotten to. And the NZ herald, well known telco reference source that it is. Reading the article I can't but help think its all a bit out dated - the language that is. It reads like a cold war novel - endless amounts of anti-corporatist rhetoric.
Its hilarious the way the article paints the current state of infrastructure in the rural sector as a simple commercial equation. As if investing an endless amount of money will solve all the problems! There's a small matter of physics to overcome re signal strength down a long piece of copper - but never let science get in the way of a good story;-)
Also the talk about southern cross and the cost of international connectivity is kinda funny too. Considering it was built before the current government was even in place - if Telecom and partners hadn't done it then everyone would be asking where the connectivity was, not how much it costs.
These guys are commenting on the wrong infrastructure business - they should try roading - then they could build a bridge and get over it.