Archive for March, 2008

Telecom NZ Separation Plan Approved For Implementation

Monday, March 31st, 2008

Telecom NZ’s revised separation plan has finally be accepted by Telecommunications and ICT minister David Cunliffe, clearing the way for full implementation of operational separation. In spite of some outstanding issues, including reporting lines for Telecom’s retail unit head, the last version by Telecom met with approval. Performance indicators and milestones included:

  • Group-based incentives for wholesale division managers must not exceed 30% of total income
  • Milestones for next generation network (NGN) rollout
  • Telecommunications Service Obligations
  • Broadband pathway
  • Digital Strategy

Most notable are:

30 June 2010 – more than 1,500 distribution cabinets will be installed or equipped with ADSL2+ or equivalent DSL capability (for example, VDSL capability) in Telecom’s Zones 1,2 and 3 with DSLAMs installed and operational

31 December 2010 – more than 2,200 distribution cabinets will be installed or equipped with ADSL2+ or equivalent in Telecom’s Zones 1,2, and 3 with DSLAMs installed and operational

31 December 2011 – 99% of lines in Telecom’s Zones 1, 2 & 3 (which equates to 80% of existing PSTN lines) will be engineered to have a maximum line loss of 60db measured at 1024kbit/s at the external termination point

2012 - No less than 84% of lines will receive at least 10Mbit/s broadband

The implementation will be monitored under the watchful eye of the Commerce Commission.

Telecom NZ Admits The Bubble has Burst!

Monday, March 31st, 2008

Many telecom Xtramail users can attest to the frustration of being trapped by Telecoms disastrous YahooXtra “Bubble” outsourcing exercise.
The Bubble, floated last August as a joint venture between Yahoo Australia and Telecom, failed to deliver the ’suite of premium services’ offerred, and instead has left both consumer and SME customers looking for answers.

Yahoo!Xtra Bubble aimed to be a “compelling differentiator”, and it certainly achieved that, but unfortunately for Telecom, it was not quite in the direction it hoped for the 600,000 Telecom internet subscribers moved from the Xtra email platform to a Yahoo hosted service.

It is always grafitfying when a large company such as Telecom is big enough to admit its mistake at aiming the new service at small business users. And even better when it comes up with a solution. That solution can be expected some time in the next two months.

With broadband and ISP services key to future growth, I rather suspect Telecom will think twice before outsourcing such a strategic service in the future. Sadly, such experiences do not bode well for the technology industry as a whole, as SaaS services are once again attempting to gain a foothold on the market. In this case, Telecom was the customer, and the vendor Yahoo let them down badly – Xtra has had no control over its email service. I can only hope that for both Telecom and its customers, the next provider has a more robust offering.

Australias NGN Takes Another Step Forward

Wednesday, March 12th, 2008

Australian Communications minister, Stephen Conroy, has named six experts to assist in drawing up an RFP for its $4.7b next generation network and to assist in evaluating RFPs.

  • Chair – Patricia Scott – Secretary of the Department Of Broadband, Communications and the Digital Economy (BCDE)
  • John Wylie – Lazard Carnegie Wylie CEO
  • Tony Mitchell – Allphones chairman
  • Laureate Professor Rod Tucker – University of Melbourne
  • Reg Coutts – Professor emeritus of communications, University of Adelaide
  • Tony Shaw – former Australian Communications Authority chairman
  • Dr Ken Henry – Treasury secretary.

Indications of a very aggressive timetable include:

  1. Panel will receive submissions from industry and the public to assist in the development of the RFP documentation by 30 March 2008.
  2. Production of the RFP
  3. Receipt of responses
  4. Eight weeks to prepare a report making recommendations on its preferred proposals
  5. Construction of the network to be started before the end of 2008

The Panel will be supported by BCDE and other key departments and specialist advisors on regulation and technical, legal and financial and commercial issues.

One key promise by the initiative is that “The government will … ensure that people who may not have access to the new fibre network will have access to the best new fixed line, wireless or satellite technology.” With an additional $95 million in funding for the Australian Broadband Guarantee program in 2008-09, to improve access to affordable broadband in these remote areas into the future.”

Telecom ADSL2+ DSLAMs Now Reach 300,000 End Users

Saturday, March 8th, 2008

Telecom Wholesale has now installed ADSL2+ DSLAMs ([ISLAMs] into 102 exchanges, connecting over 300,000 end-users to Internet speeds of up to 20Mbps. Users living within 1.5km to 2.0km from these exchange can now obtain peak speeds  regardless of the ISP they subscribe to.

Other factors impacting the speed to the end-user’s modem include:

  • ISP allocated international capacity and backhaul
  • Time of of day 
  • House-wiring
  • Modem compatability

For those living beyond 2kms from an exchange, Telecom’s  cabinetisation programme will position the ISLAM nearer to these users, acting like interim exchanges. In the meantime, depending on distance from the exchange, users may experience slight improvements.

A broadband customer who received speeds of 20Mbps is better positioned to utlise:

  • VoIP 
  • Movies, video on demand and IPTV – some way off yet.
  • Much faster download speeds – especially for application upgrades and service packs, which can be around 80MB
  • Improved video streaming from sites such as YouTube

2007 Market Facts:

  • Uptake of broadband in New Zealand is currently at approximately 38%. 
  • Online retail is at only 0.5% of total retail spend [7% in the UK and US].   

Ericsson To Upgrade Vodafone Australias 3G Network

Friday, March 7th, 2008

Ericsson has won the contract for Vodafone Australias 3G network upgrade, covering regional and rural Australia. And future upgrades to 28.8Mbps are on the roadmap.

The hardware and software upgrade will boost Vodafones 900MHz and 2100MHz networks to deliver a 14.4Mbps [maximum theoretical downlink]. The limits of handsets and mobile cards restricts the theoretical speed, however the increased network capacity will allow more efficient traffic management.

Urban 3G users can expect their theoretical maximum download speed to rise from 3.6Mbps to 7.2Mbps.

Work is expected to commence within weeks, with teams upgrading the network in all states simultaneously. The upgrade will allow new services that demand a higher speed network. Vodafone is currently conducting European HSPA+ trials for the 28.8Mbps throughput. Whilst Vodafone is striving for 7.2Mbps, rival operator Telstra has firm plans to increase its NGN speeds to 21Mbps this year and 42Mbps in 2009.

Australian Government Demands Telstra and Optus Provide Network Data to FTTN Rivals

Wednesday, March 5th, 2008

The Australian government has demanded that major network provider, Telstra and other carriers provide physical details of their networks, to allow competitors to prepare submissions for the government’s proposed fibre-to-the-node network. This includes the length and location of cables.

Although under threat, Telstra has agreed to the demand, but claims the detail required could potentially be a threat to national security and law enforcement.

Compare this with the FTTN tender process currently underway in Singapore; SingTel is not being asked to divulge commercially sensitive information or law enforcement-related information to either the government or to competitors.

The Government maintains that sensitive data will not be distributed in an uncontrolled manner, and will be treated with utmost confidentiality. Small comfort in a world of commonly government leaked documents.

Optus also received a similar request. Optus is leading a rival G9 consortium also intending to tender for the FTTN network.