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Telecom New Zealand cabinetisation plans

By Mauricio Freitas, in , posted: 23-Nov-2007 08:02

To summarise the whole issue with Telecom's announced cabinetisation from my point of view:

1.Most entrants seem to have low knowledge of telco market and technologies otherwise they would have seen this coming

2.Most entrants have bad strategists and architects that couldn't figure out 12 or 24 months ago what would happen when Telecom New Zealand put out their plans (or didn't want to)

3.Most entrants seem to still believe that someone else should bear the investment costs while they only "co-locate"

4.Most entrants are likely to be "naturals" and put their hardware where the money is - no investments anywhere else but the most profitable areas leaving it to the incumbent to do it anywhere else, then asking for access.

5.Most people on the street and mainstrean media bash Telecom New Zealand because they are Telecom New Zealand, regardless of they actually doing a good job in deploying technology.

I know it's not a freeload ride. Entrants have to pay fees to use the facilities. But excuse me while I disagree with everyone else, and the government. Local Loop Unbundling is not good in itself. It just means entrants have the option of not investing in infrastructure, leaving this to the incumbent.

I was talking to Vodafone New Zealand's Paul Brislen and he said something along the lines of "but [with LLU] smaller companies can increase their market share slowly, building up the capital for later investment".

I believe this only if there would be a provision like "for every dollar you pay to co-locate you have to invest a % in new infrastructure". But most companies would just cry "new tax on business!". Truth is, companies want the maximum return at lowest possible investment.

The current exceptions are TelstraClear and Citylink which have deployed their own infrastructure in certain parts of the country.

And WorldxChange seems to know what they are talking about, if we go by what they posted in our forums.

This is one interesting comment from a reader:


Yes it's a little bit rich when one of those companies complaing happens to be the 16th largest company in the world and the largest Telco in the world.

They could roll out their own network tomorrow and then offer it to their 'small isp' buddies tomorrow.

I won't be holding my breath...


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Mauricio Freitas
Wellington
New Zealand


I live in New Zealand and my interests include mobile devices, good books, movies and food of course! 

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