Thirteen Crown Fibre retailers named - who's missing?

The Ultra Fast Broadband initiative is heating up as Crown Fibre Holdings announced today thirteen service providers interested in selling the service to customers.

The providers have signed Letters of Intent to retail the UFB services and CFH expects retailers' product offerings and prices to flow through the market in the following weeks, the press release today said.

Crown Fibre deals signed so far include wholesale pricing from $39 a month. Wholesale providers for most of the 33 Crown Fibre regions have yet to be named.

Telecom and TelstraClear are conspicously absent from the list.

 CallPlus (Slingshot)
 FX Networks
 Kordia
 MaxNet
 Orcon
 Rural Link (Hamilton)
 TrustPower Kinect (Tauranga)
 Uber Group (Whangarei)
 Velocity Networks (Hamilton)
 Vodafone
 Woosh
 WorldXChange
 XfNet (Whangarei)

CEO of CFH Graham Mitchell said the state-owned company had worked hard to make UFB services affordable and it was delighted with the level of interest received from so many service providers.  He said one key to the success of the initiative was a variety of service providers offering new products.

" Given the attractive UFB wholesale prices, retailers will be able to offer superior internet and voice services for much the same price as customers pay for communications over copper today."  He said there would also be the opportunity to offer high definition video and cloud computing for the business market.

Chief executive of TUANZ Paul Brislen said it would be great to see some retail prices in the market so users could plan their telecommunications future spending.

"The more competition the better in our view.  TUANZ looks forward to seeing innovative and competitive pricing from these retailers."

A spokesperson from CFH today said in response to NBR's query as to why Telecom and TelstraClear had not been included on the list of service providers, that "CFH understands TelstraClear is in active conversations with Local Fibre Companies regarding potential take-up of UFB services.  CFH and TelstraClear also continue to engage regarding UFB deployment and commercial terms. 

Due to Telecom's negotiations to partner in the UFB, at this stage it is understandably focused on these matters."

Telecom's response to the same query was that the company had not been approached by CFH to sign a letter of intent, and it remains in "detailed negotiations" with CFH. 

"We note that none of the parties currently engaged in negotiations with CFH appear to have been included in the list of 13 telecommunications services providers released by CFH today."

Telecom said it had spent tens of millions of dollars through its involvement in the UFB process; "such is our commitment to UFB".

"Telecom already provides a range of fibre-based Ultra-fast broadband products through its Gen-i and Wholesale businesses, and looks forward to continuing to provide a wide range of fast broadband, including fibre-based, services through our retail business."

TelstraClear said while it was supportive of investment in UFB and had been talking to local fibre companies to provide products and services to New Zealand, it had grave concerns about the "flawed regime" proposed to govern the investment.

"The draft terms in the Crown Fibre Holdings (CFH) letter of intent for retail service providers, such as TelstraClear, provide no certainty of fair long-term competition."

TelstraClear said the retailers had no say in the fibre company contracts with CFH and such contracts only benefit the fibre companies, not the retailer and thus New Zealand customers.

"One major concern is that after the initial contract period the fibre companies will have open slather to change prices, restrict or withdraw services or make any other changes – all at the eventual expense of every Kiwi connected to UFB.  In short, monopolies are created and given free reign with no independent checks and balances."

TelstraClear said it is continuing to discuss these concerns with the government and CFH.