Ministry of Economic Development report says NZ must unbundle

Discussion in 'NZ Computing' started by mic os, May 17, 2004.

  1. mic os

    mic os Guest

    "Local-loop unbundling and the sharing of radio transmission sites are
    two examples of facilities-based competition. Although it requires
    regulatory intervention, facilities based-competition may be the most
    efficient (or perhaps the only) way to achieve competition, given New
    Zealand’s small, thinly-dispersed population and rugged terrain."

    The report makes it clear that New Zealand's current
    telecommunications infrastructure is world class, yet remains
    under-utilised.

    "In a small market with limited competition, government regulations
    are necessary to maintain optimal conditions (whereas in a truly
    competitive market, the regulatory environment is less significant)".

    The report also outlines benchmarks for broadband that the MED would
    like to see in place by 2010. These include 50Mbit/s service for most
    homes in New Zealand with those remote customers, roughly 15% of the
    country's population, "only" able to receive 10Mbit/s.
    mic os, May 17, 2004
    #1
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  2. mic os

    Don Gould Guest

    And how does the MED expect this 50mbits is going to happen in the next
    6 years?

    Telecom are pushing ADSL technology out there at present that's only
    capable of 8/1mbit. Currently users are being limited to 128 or 256k
    connections or being forced to expose them selves to potentially huge
    data bills.

    Having purchased a new $300 modem people aren't going to then purchase
    another bit of equipment just because the MED says that homes should
    have 50mbit.

    This reads like woffle if you ask me. No one is about to unbundle the
    local loop because of the impact it would have on Telecoms share price.

    Even unbundled Telecom would still charge for access and hinder the
    process so much that it wouldn't be economic for providers to get into
    the market.

    Cheers Don

    mic os wrote:

    > "Local-loop unbundling and the sharing of radio transmission sites are
    > two examples of facilities-based competition. Although it requires
    > regulatory intervention, facilities based-competition may be the most
    > efficient (or perhaps the only) way to achieve competition, given New
    > Zealand’s small, thinly-dispersed population and rugged terrain."
    >
    > The report makes it clear that New Zealand's current
    > telecommunications infrastructure is world class, yet remains
    > under-utilised.
    >
    > "In a small market with limited competition, government regulations
    > are necessary to maintain optimal conditions (whereas in a truly
    > competitive market, the regulatory environment is less significant)".
    >
    > The report also outlines benchmarks for broadband that the MED would
    > like to see in place by 2010. These include 50Mbit/s service for most
    > homes in New Zealand with those remote customers, roughly 15% of the
    > country's population, "only" able to receive 10Mbit/s.
    Don Gould, May 18, 2004
    #2
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  3. mic os

    steve Guest

    Don Gould wrote:
    > And how does the MED expect this 50mbits is going to happen in the next
    > 6 years?
    >
    > Telecom are pushing ADSL technology out there at present that's only
    > capable of 8/1mbit. Currently users are being limited to 128 or 256k
    > connections or being forced to expose them selves to potentially huge
    > data bills.
    >
    > Having purchased a new $300 modem people aren't going to then purchase
    > another bit of equipment just because the MED says that homes should
    > have 50mbit.
    >
    > This reads like woffle if you ask me. No one is about to unbundle the
    > local loop because of the impact it would have on Telecoms share price.
    >
    > Even unbundled Telecom would still charge for access and hinder the
    > process so much that it wouldn't be economic for providers to get into
    > the market.
    >
    > Cheers Don


    True....

    Keeping Telecom a cash cow is pretty much unspoken government policy -
    no matter who the Government is.

    National refused to even set up a Telecommunications Commission.
    steve, May 18, 2004
    #3
  4. mic os

    JedMeister Guest

    I did not know we had a ministry of economic development...is it possible to
    get free loans from them?


    "mic os" <> wrote in message
    news:...
    > "Local-loop unbundling and the sharing of radio transmission sites are
    > two examples of facilities-based competition. Although it requires
    > regulatory intervention, facilities based-competition may be the most
    > efficient (or perhaps the only) way to achieve competition, given New
    > Zealand's small, thinly-dispersed population and rugged terrain."
    >
    > The report makes it clear that New Zealand's current
    > telecommunications infrastructure is world class, yet remains
    > under-utilised.
    >
    > "In a small market with limited competition, government regulations
    > are necessary to maintain optimal conditions (whereas in a truly
    > competitive market, the regulatory environment is less significant)".
    >
    > The report also outlines benchmarks for broadband that the MED would
    > like to see in place by 2010. These include 50Mbit/s service for most
    > homes in New Zealand with those remote customers, roughly 15% of the
    > country's population, "only" able to receive 10Mbit/s.
    JedMeister, May 18, 2004
    #4
  5. mic os

    brundlefly Guest

    "JedMeister" <> wrote in message
    news:hFdqc.6601$...
    > I did not know we had a ministry of economic development...is it possible

    to
    > get free loans from them?
    >


    Do you want to study hip hop ?
    brundlefly, May 18, 2004
    #5
  6. mic os

    Dave Taylor Guest

    "brundlefly" <> wrote in
    news:RZdqc.2736$:

    >
    > "JedMeister" <> wrote in message
    > news:hFdqc.6601$...
    >> I did not know we had a ministry of economic development...is it
    >> possible

    > to
    >> get free loans from them?
    >>

    >
    > Do you want to study hip hop ?
    >
    >
    >


    Go for the massage, hip hop is on the radio.
    Ciao, Dave
    Dave Taylor, May 18, 2004
    #6
  7. In article <40a95357$>, steve@mozilla-
    thunderbird0.6.org.nz says...
    > Don Gould wrote:
    > > And how does the MED expect this 50mbits is going to happen in the next
    > > 6 years?
    > >
    > > Telecom are pushing ADSL technology out there at present that's only
    > > capable of 8/1mbit. Currently users are being limited to 128 or 256k
    > > connections or being forced to expose them selves to potentially huge
    > > data bills.
    > >
    > > Having purchased a new $300 modem people aren't going to then purchase
    > > another bit of equipment just because the MED says that homes should
    > > have 50mbit.
    > >
    > > This reads like woffle if you ask me. No one is about to unbundle the
    > > local loop because of the impact it would have on Telecoms share price.
    > >
    > > Even unbundled Telecom would still charge for access and hinder the
    > > process so much that it wouldn't be economic for providers to get into
    > > the market.
    > >
    > > Cheers Don

    >
    > True....
    >
    > Keeping Telecom a cash cow is pretty much unspoken government policy -
    > no matter who the Government is.


    Bet the government gets a lot more from taxes now than they ever got in
    revenues when Telecom was state owned.
    Patrick Dunford, May 18, 2004
    #7
  8. In article <q5cqc.6562$>, Don Gould <> wrote:
    >And how does the MED expect this 50mbits is going to happen in the next
    >6 years?
    >

    They're looking at technological progress, and what's becoming possible.

    >Telecom are pushing ADSL technology out there at present that's only
    >capable of 8/1mbit. Currently users are being limited to 128 or 256k
    >connections or being forced to expose them selves to potentially huge
    >data bills.
    >

    Think outside the square. Current technology will be superceded. Also,
    giving people good access to real broadband will make them more likely
    to upgrade when a faster product is available.
    Plus, the caps are a Telecon thing not a technology thing. Once LLU is
    pushed through, it is up to the provider to decide if a cap is necessary
    - The only reason nobody runs uncapped DSL is because Telecon won't let
    them. All the per-meg charges go to Telescum, not to the ISP.

    >Having purchased a new $300 modem people aren't going to then purchase
    >another bit of equipment just because the MED says that homes should
    >have 50mbit.
    >

    Very few households have full-rate DSL, even though it's available. The
    availability of a product in no way requires people to use it. Where
    the hell did you get that nonsense from?

    >This reads like woffle if you ask me. No one is about to unbundle the
    >local loop because of the impact it would have on Telecoms share price.
    >

    It's actually possible that the Government might be looking at the
    greater good that will come from giving NZ access to fast 'net access at
    a reasonable price.

    >Even unbundled Telecom would still charge for access and hinder the
    >process so much that it wouldn't be economic for providers to get into
    >the market.
    >

    *SNIP*

    Unbundling means that Telescum no longer has control. They don't set
    the prices once it's unbundled, the organisation charged with
    maintaining the local loop does. So it matters not a jot what Telecon
    will or will not do since it's none of their business - Literally.

    --
    Matthew Poole Auckland, New Zealand
    "Veni, vidi, velcro...
    I came, I saw, I stuck around"

    My real e-mail is mattATp00leDOTnet
    Matthew Poole, May 18, 2004
    #8
  9. mic os

    steve Guest

    Patrick Dunford wrote:

    .........

    > Bet the government gets a lot more from taxes now than they ever got in
    > revenues when Telecom was state owned.


    You'd need to back that up with numbers.

    The last year Telecom was govt owned, they returned over NZ$400M to the
    government.

    Unless they are paying 50 cents in the dollar, I don't think you're
    right....as they would need to have NZ$1.2B in annual taxable profit to
    make the same return.....in 1990 dollars....never mind 2004 dollars.

    Have they done that?

    You must know the answer....having made the claim.

    Can you flesh it out a little?
    steve, May 18, 2004
    #9
  10. mic os

    steve Guest

    JedMeister wrote:
    > I did not know we had a ministry of economic development...is it possible to
    > get free loans from them?


    It used to be the Ministry of Commerce.

    It was renamed to indicate a change in direction.

    By and large, it has been well received, particularly in the regions
    (ie: not in Auckland) where the Minister concerned has made it a
    priority to encourage growth and jobs.

    There have been a few errors and mis-steps.....but not many...which may
    explain why you haven't heard of it.
    steve, May 18, 2004
    #10
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