The New Zealand incumbent telco has separated itself into infrastructure and access companies, according to Telecom TV. This week it was announced that the incumbent telco will demerge so that Chorus, the firm’s fixed-line infrastructure arm, would be able to participate as an independent entity in the upcoming award of government contracts for the building of a national broadband network. It’s believed that this is the first time that an incumbent has undertaken complete separation. The new structure should mean that New Zealand avoids the ‘incumbent problem’ Australia suffered when full-scale war broke out between Telstra and the government around the role of the still vertically-integrated incumbent in the development of that country’s NBN. Shareholder approval for the complete services/infrastructure split in New Zealand was gained this week.
While Telecommunications Regulatory Commission of Sri Lanka awaits public comments on its ‘National Backbone Network’ proposed to be installed mostly as a fully government owned infrastructure to provide islandwide broadband links, New Zealand Government says it would be a huge waste of taxpayer money to put $1.5 billion into ultra-fast broadband access. New Zealand’s National Party leader John Key announced the ambitious plan to put broadband into every home and business through fibre cables over the next six years if his party wins the next election. Mr Key said that with the fibre network he wanted, people would be able to use the internet at lightning speed – essential if the country was to increase productivity and remain internationally competitive. But Communications Minister David Cunliffe saw nothing but problems and trouble.
Telecom Cook Islands Ltd, the sole provider of telecommunications in the Cook Islands, has completed commercial deployment of ADC’s UltraWave GSM softswitch. Telecom Cook Islands, which has been in operation since July 1991, is a private company owned by Telecom New Zealand Ltd. (60%) and the Cook Islands Government (40%). The new softswitch – which upgrades Telecom Cook’s core wireless network to more efficient, IP-based technology in order to reduce costs and enable value-added services such as integrated SMS, voicemail, GPRS and pre-paid calling, has been in deployment since September 2007, and the final network cutover was accomplished last week. The UltraWave solution includes an overall expansion of the network’s capacity to 15,000 from 8,000 GSM subscribers.
The break up of AT&T in 1984 led to a seismic shift in telecom policy and regulatory thinking worldwide and also created the conditions for the Internet boom. New Zealand is a small country quite unlike the US, but it has taken an unprecedented step that has the potential of changing policy and regulatory thinking again. As the excerpt below says, the split is on the lines of the BT reorganization in the UK. That is true. But the key difference is that BT reorganized voluntarily and NZ Telecom, not.
BBC: http://news.bbc.co.uk/2/hi/asia-pacific/4988492.stm More than 30 countries around the Pacific Ocean have tested a system to warn them of approaching tsunamis.