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View Full Version : As exprcted,Watchdog recommends broadband competition for Telecom



metla
18-09-2003, 11:40 PM
The Commerce Commission today recommended Telecom should be forced to open parts of its network to competitors, saying the move would dramatically increase the takeup of broadband Internet in New Zealand.



http://www.stuff.co.nz/stuff/0,2106,2663420a13,00.html

metla
18-09-2003, 11:41 PM
We're predicting 62 per cent price falls in the business market, and 51 per cent in the residential market for DSL (Digital Subscriber Line) products", he said.



yeeeeeeeeeeehaaaaaaa....

Murray P
19-09-2003, 12:21 AM
Under unbundling, competitors would pay Telecom for access to the copper network and for access to install necessary hardware in the incumbent's exchanges. The fee would be set by negotiation between Telecom and the competitor with the commission intervening if an agreement could not be reached. excerpt from the release. Well how long is Telecom going to argue the toss on access costs. Remember they've been argueing number portability and and the current favourite unbundling for about 10 years or more. At least with a commissioner involved now it might halve it. My guess is they will let you and me carry the cost rather than do the hard yards.

Sorry to be a joy germ, I just can't bring myself to hope that it will turn out ok without custard being involved for the consumer. :(

Cheers Murray P

DangerousDave
20-09-2003, 01:05 AM
I for one, arn't going to get my hopes up... *sigh* unfair but probably true for the near future....

- David

hamstar
20-09-2003, 01:12 AM
I heard from my tutor when he rung clear, the said in 6 months (i think) something bigs gonna happen in the broadband department.

can't wait.

Terry Porritt
20-09-2003, 01:22 PM
I heard on the radio yesterday that Telecom are changing their high speed plans to make them more generally attractive. They are reducing XTRA ISP charges by $10.

Absolutely typical, This is what Telstra over in kangaroo land have done with their Bigpond to get more custom, meanwhile go hang everyone else on ADSL who are not with Xtra.

Murray P
20-09-2003, 04:33 PM
it's Dirty Poo that's running the show at the moment not competition.

Cheers Murray P

Murray P
20-09-2003, 04:38 PM
HELP Editorial Standards Action Team modification required, pleeease :8}. That should be of course Pool not Poo in the above post :8} :8} :D

Cheers Murray P

PS. Maybe Poo is a better word in this instance.

Baldy
20-09-2003, 07:34 PM
One thing that annoys me about this, is how Telecoms competitors feel they have the right to use the network that Telecom designed set up. That network cost Telecom tens of millions.

As an analogy, I am going to start up a new chain of burger bars and get permission from Commerce Commision to use the kitchen facilities of every McDonalds/Burger King franchise, then, set my counter right inside the front door and charge only half of what McDonalds/Burger King do for the equivalent food!

IMHO, if Telestra/Vodofone want to have access to the Telecom Network because they want to replicate what Telecom does (for the benefit of the consumer, hohum) then why don't they set up their own network? NOT take advantage of what Telecom have spent years developing!

I can remember the days when the only way you could get a telephone connection, was for someone in your area to have their phone disconnected. Mostly to get a connection, you had to wait anything up to a month or even longer. And, it wasn't that long ago either. I for one think Telecom provide an excellent well priced product.

Baldy

Thomas
20-09-2003, 10:53 PM
About telecom,I can only say I have had a flawless service from them.

cold_fu5ion
20-09-2003, 11:10 PM
Humm,
"excellent well priced product"
When I can get this product I'll let you know if it's excellent. Untill then I am more than happy for someone (anyone) else to provide me with ADSL.
Telecom REALLY need to do something about their broardband coverage.

godfather
21-09-2003, 12:16 AM
> One thing that annoys me about this, is how Telecoms
> competitors feel they have the right to use the
> network that Telecom designed set up. That network
> cost Telecom tens of millions.

The underlying issue here is that the Network was paid for by you and me, either as subscribers or as taxpayers. The problem is the Government then sold that part of the network off. That was the error.

The network should be a separate asset, maintained and managed, run as a responsible company in its own right. It should exist for any other company to be able to pay normal commercial rates to use it to offer services to consumers.

This is how the electricity industry operates, it is not lawful for a company that owns the cables to also be involved in selling electricity that flows in the cables.

In the Telecom case, they both own the cables and sell the product that flows through them. That is a position that enables dominance, and with the unbundling that dominance is theoretically weakened.

If we look to the electricity sector as an example, we should not expect prices of ADSL to tumble fast unfortunately.

Thomas
21-09-2003, 09:47 AM
We did indeed pay for the network,as I have said b4 the goverment then sold it,creating a monopoly.
So who are we to blame, the gov. for selling it or the company for buying it. The government sold it ,so I believe the buck stops there.

agent
21-09-2003, 10:01 AM
Don't forget the fact that the network Telecom set up was provided to them at reduced price by the USA. Why? Because they wanted to test new telecommunications equipment in a small area (NZ) before installing it in their own country. So Telecom got provided all this then state-of-the-art equipment.

Of course, that equipment isn't the best now.

However, the main point here, is that it would cost any telco billions to setup a new network here, because of how long everything has been in place. Major infrastructure work would be happening all over the country, and it's not something any telco (except maybe Telecom, if they upgraded their current network) can afford to do and expect to get major revenue in return. Hence why it would be easier by far to have the network owned by a third-party, and all telcos pay this party for access to the network.

Baldy
21-09-2003, 11:21 AM
> > One thing that annoys me about this, is how
> Telecoms
> > competitors feel they have the right to use the
> > network that Telecom designed set up. That network
> > cost Telecom tens of millions.
>
> The underlying issue here is that the Network was
> paid for by you and me, either as subscribers or as
> taxpayers. The problem is the Government then sold
> that part of the network off. That was the error.
>
> The network should be a separate asset, maintained
> and managed, run as a responsible company in its own
> right. It should exist for any other company to be
> able to pay normal commercial rates to use it to
> offer services to consumers.
>
> This is how the electricity industry operates, it is
> not lawful for a company that owns the cables to also
> be involved in selling electricity that flows in the
> cables.
>
> In the Telecom case, they both own the cables and
> sell the product that flows through them. That is a
> position that enables dominance, and with the
> unbundling that dominance is theoretically weakened.
>
> If we look to the electricity sector as an example,
> we should not expect prices of ADSL to tumble fast
> unfortunately.


Glad you mentioned the Electricity Industry GF....... that is a prime example of "competition" in action. I agree, the price of ADSL will not tumble. I think it will pretty well stay the same. Electricity companies have not exactly fallen over themselves to provide a marked price difference. The opposite in fact. Contact puts its prices up, and the rest follow suit. In much the same way as the Petrol Companies.
In NewZealand, competition does not equate to lower prices. Nor better service. We are still slaves to paying through the teeth
Any of you kids at school reading this - ask the bill payer

agent
21-09-2003, 12:06 PM
> Any of you kids at school reading this - ask the bill payer

Well actually, the vast majority of children are now on holiday. So physically we aren't actually at school, though again, the vast majority of us still attend school so technically are "at school", so to speak.

Anyway, some children do actually help to pay the bills - they're made to pay lodging to their parents. I don't think that this case is widespread, but it certainly does exist, so it isn't exactly right to assume parents pay the entire bill.

metla
21-09-2003, 12:48 PM
The difference is we all need electricity,Cant go without it,so the companies can rort the prices and dont need to undercut each other.

As far as brodband goes,we can vote with our pockets and just choose to stay on dial-up,At which point someone will have to offer a good priced deal to get the unwashed masses to sign up.

As it stands i think less then 2% of users use jetstart,I cant see that changing unless something of value is placed on the table.

Baldy
21-09-2003, 12:55 PM
> > Any of you kids at school reading this - ask the
> bill payer
>
> Well actually, the vast majority of children are now
> on holiday. So physically we aren't actually at
> school, though again, the vast majority of us still
> attend school so technically are "at school", so to
> speak.
>
> Anyway, some children do actually help to pay the
> bills - they're made to pay lodging to their parents.
> I don't think that this case is widespread, but it
> certainly does exist, so it isn't exactly right to
> assume parents pay the entire bill.

Whether you are at School, or on holiday you are still schoolkids. I don't think there would be too many children in NZ who would pay lodgings or help pay the household accounts. Having said that, I paid for my own highschool uniform from my milkrun earnings, when I used to get up at 4am 7days a week.

The point about "asking the bill payer" was to ask your parents about the bad old days of Telecom when you had to go on the waiting list just to get a telephone. If they lived in NZ 20years ago that is.