Rod Drury
Don’t squander broadband opportunity
Over the next few months National will be keen to obtain some quick wins. Broadband is an area where a difference can be made quickly but there are some big questions to answer to clear the current uncertainty.
1. What is Kordia? The market needs clarification as whether Kordia is a vertically integrated telco or a state-owned enterprise that will improve New Zealand’s broadband. What is the role of Kordia in a new submarine cable?
2. How to ensure Telecom remains a strong and vibrant company? New Zealand needs a strong carrier who will invest in products, networks, people and partners. After the last few months Telecom must feel punch drunk and on the ropes. It is time to work more collaboratively with Telecom.
3. The role of David Cunliffe? David understands the ICT industry and the people in it. His experience is too valuable to leave on the sidelines for six years. The Hawke's Bay District Health Board saga may have harmed relations but I’d think hard about extending a role for him in broadband and keep him close.
4. Solving the right problem. Fibre to the Home is too interventionist and too expensive. The priority should be driving our connection to the world to an open access, cost plus model so that all New Zealand businesses can be next door to customers anywhere in the world. Open up our international links and investment will flow to solve connectivity to the last mile.
5. Broadband Investment Fund. Continue the lolly scramble or hold those funds until we’re ready to implement a strategy?
We have a unique opportunity to change the rules and make New Zealand the most connected country on the planet. Lets not squander it.
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Comments
The big International gap
NZers should concentrate on generating content, not on hosting the stuff locally to connect to the world. Even if bandwidth costs are zero it would be cheaper to host content in America, and if you are talking to the world then performance, which is affected by distance more than people realise, is better. We do not have scale to ever make hosting in NZ better or cheaper than US, so the only reason to host locally is for the local market (where international bandwidth is immaterial)
Rod Drury and Fibre to the home
I am glad that someone is questioning the requirement for Fibre to the home using $1.5 Billion of Taxpayers money.
I have been asking exactly what I will get as a RESIDENTIAL customer from Fibre to the home and no-one has been able to give me an answer.
With AdSL2+ or VDSL I will be able to:
- Make voice calls
- Surf the net
- Log onto my computer at work (doing it now)
- Watch between 3 - 5 video channels
- Upload pictures to the internet.
No one has been able to tell me why I need fibre to the home. So far the reasons have been very wishy washy and not specific. Certainly not specific enough to justify $1.5 Billion of taxpayers money.
I fully agree with building out our International links to break the Telecom monopoly of Southern Cross Cable. And fibre to the Telephone exchanges, cabinets and in the national backhaul. This means that the cost of data should drop substantially.
I agree with building out Fibre to Business parks and Business areas where business can get good synchroneous access at reasonable rates. If a company is not in a business park to get high speed data access? My suggestion is move there.
How many businesses will require very high speed data? Supermarkets? Corner Dairys? Plumbers, Electritions & Builders? Retailors? Manufacturers? Cafes? Etc, etc. . .
But. Fibre to my home??? I can only watch so much video and VDSL should provide 3 simultaneous channels. (I only have two eyes)
Until someone explains exactly what I will get as a residential customer, I am still not convinced.
Fibre to the business park
The previous post shows the total ignorance of the penetration of fibre into the community today.
Go and look at the current deployment of Telecom's fibre on www.broadbandmap.govt.nz (click on Telecom Fibre) and then look on the map at any major business district - anywhere in NZ - and then argue that taxpayers money should be spent rolling fibre to thse places. Look at the claims for coverage by FX networks/TelstraClear/Kordia/Councils and others and the case for rolling our "national" (i.e. longhaul) fibre looks even more ridiculous. The only investment in fibre required is the "last 500 meters". And even then there is no compelling "demand" story.
What needs to happen is that TUANZ, InternetNZ, MED and the myriad other "lobbyists" need to get out into the business world and stop telling people how "cheap" fibre will be (because it won't be) and start telling them about the return they will get from investing in using a fibre-based broadband/comms service. And that all they have to do is call 0800 Telecom/Kordia/TelstraClear/VodaHug and others to get it today. But it won't be cheap - it will never be cheap.
If end-users believe they won't get any additional benefit (for the additional cost) then they should accept that maybe bog-standard, DSL-based broadband is sufficient. Remember there are still businesses out there that won't accept Eftpos as a form of payment - as they believe that the cost does not translate into increased sales/cust satisfaction. So if Eftpos is a bridge too far for these guys how the hell are we going to get them to invest in Broadband?
Fibre to the home
Rod, right now I have a choice of numerous power company retailers to purchase my power off. One company (Transpower) looks after national distribution and one company (Orion in my case) delivers it to my home. The biggest benefit for residential consumers of fibre to the home will be to get rid of Telecom's monopoly over copper, finally giving ALL consumers the choice they having been waiting for.
I agree with you that right now it’s difficult to see a ‘need’ for FTTH but it will be the ‘copper’ of the future and who knows what that holds? Here is an article from the States on US Airline JetBlue who have 1500 of its reservation staff working from home. Think of the huge benefit to the environment alone from keeping these teleworkers off the roads.
http://www.tuanz.org.nz/blog/e379f711-b2b6-4423-9e32-4a8bf9f301db/c88886...
FTTH
FTTH is esential. I use the internet and our speeds are to slow. We pay to much for what we get. And we are shafted by a monopoly-triopoly. Essentailly the fibre network will enshure we arent shafted, that we have the best level of service and that we do not have a monopoly. All of you ignorant people are concerned about the cost. Well i think its time you looked at the benefits and huge sums of revenue this will provide. And most of the revenue to the government will be derviative from economic benefits. And that money could save you on taxes. And your telecomunications will be alot cheaper. So personally you could save alot of money. And if you dont use internet and live in the cave ages then tough because i do not intend to live like a caveman. Throw away all your technology and go to a dessert or something.
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