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fibre opticWhat will move New Zealanders from copper to Ultra-Fast Broadband?

Or as we used to say in the 1990s: “What is the UFB killer app”?

Video is the simple answer. It’s not the only answer. We’ve been using video communications tools such as Facetime and Skype with success since the early days of ADSL. Video conferencing worked up to a point on dial-up connections. It worked better on ADSL and performs fine on most copper-based VDSL connections.

The same goes for streaming video entertainment. You can, at a pinch, watch it on all but the most feeble connection. True, you get a better experience on a faster connection. And there’s little point trying to watch a high definition movie if you have slow internet.

High definition video

Yet even HD video works fine on a VDSL connection. You need to have rarified tastes to need more than, say a 30 Mbps connection.

Sure, 100 Mbps plus is necessary if more than one person in your house is watching at the same time. And, yet, Vodafone does specify that you need a 100 Mbps connection to watch Vodafone TV.

Fibre improves the video experience mainly because it is faster. It’s also more reliable, less prone to outages.

Speed is the real killer app for fibre-based broadband. Faster broadband means you can do things that were either marginal or flaky with copper connections.

What about wireless?

Many fixed wireless broadband customers are able to get speeds that are fast enough to watch streaming video. Most of the time. There are issues.

First, fixed wireless bandwidth is shared. That means if you live in a neighbourhood with lots of other fixed wireless broadband connections, the performance can drop when everyone else is online. The can mean peak evening TV viewing hours.

Second, for now, the fixed wireless broadband plans on sale in New Zealand have data caps. That means you only get so many video viewing hours each month. That’s fine if you’re a light TV watcher, but is a deal breaker for many.

Even when everything is working fine, fixed wireless broadband connections tend to be slower and less reliable than fibre connections. Technology may change that — one day. For now, you can’t be guaranteed there will always be enough speed.

In today’s word, speed is the killer app.

For several years now, the trend among geeks has been to abandon the RSS format. RSS, or Really Simple Syndication, is a way to queue up and serve content from the internet.

Source: The Case for RSS — MacSparky

Geeks might not like RSS, but it’s an essential tool if you monitor news or need to stay up to date with developments in a subject area.

An RSS feed is a way of listing material that’s published online. There’s a feed for this site if you’re interested. It sends out a short headline and extract as each post is published. That way you can stay up to date with everything published here without needing to constantly revisit the site to check for updates.

Separate feeds

Some big sites break up their news rivers into separate feeds. At the New York Times or The Guardian you can choose to read the technology news feed. At ZDNet you can pick subject feeds or selected a feed for an individual journalist.

Sometimes you can also roll your own niche feeds from big sites by using a search term to get a list of all stories including a certain key word.

The beauty of RSS is that it is comprehensive. It misses nothing. If you go offline for a week you can pick up where you left off and catch up immediately.

RSS is comprehensive

The alternatives are social media sites like Twitter or Facebook. They are nothing like as comprehensive or as easy to manage. Tweets go flying past in a blur on Twitter.

All the main social media sites manage your feed. They decide what gets served up. This means you can miss important posts as they get pushed out of sight. That doesn’t happen with RSS.

In his story David Sparks says you need to be on Twitter all the time to catch news. Make that: you need to be on Twitter all the time AND staying more alert than most people can manage.

Universal feed

The other great thing about RSS is the format is so universal. It can be as simple as raw text. You can read it on your phone, tablet, computer or anywhere at any time. You can suck it out and place it on your own web site, for instance.

There are RSS readers built into browsers, mail clients like Outlook and other standard software. Or at least there were. I haven’t checked again lately. One of the most popular readers is Feedly. This is both a website and a series of free apps. You can pay a little extra to extra features such as an ability to search feeds, tools for integrating feeds into your workflows and so on.

The case for RSS was first posted at billbennett.co.nz.

Indieweb – why you should take more control of your online presence and how to use WordPress to do it.

What you post online should belong to you, not a corporation. That corporation can close shop or change its rules tomorrow: you may not be able to get at your own data.

Even if you can get at your data, you often have little control over who can see your posts and messages.

The IndieWeb is all about you keeping control over your posts and data. Think of it as a declaration of independence. It means you get to choose who can see your material where and when. The idea is to build a long- presence that big business interests can’t take away.

It doesn’t mean you have to walk away from Facebook, Twitter or any other service. It does mean you don’t need to be trapped in someone else’s walled garden.

Indieweb and WordPress

WordPress is an ideal open source tool for building a personal online presence. You don’t need to be a developer to use it. And the Indieweb is a great way to get more from a WordPress web site.

At the November WordPress meet up I’ll talk about the ideas behind the Indieweb. We’ll discuss the problems it solves. Then I’ll look at the WordPress themes, plug-ins and other tools to help make it work. I’ll also talk about my experience using them in practice and in my work as a journalist.

There will be plenty of opportunity to ask questions during the presentation and after.

Event details:

Vodafone says it will start moving all its copper landline customers to a voice over IP service later this month.

The Dominion Post reports Vodafone will move customers with VDSL connections first. Those on the Vodafone FibreX cable network and customers with older copper connections will move next year.

Vodafone consumer director Matt Williams says the move is a response to Spark’s planned PSTN shut down. In April Spark said it will close the old telephone network by 2022. Vodafone buys PSTN services from Spark.

No more languishing

Williams says the early change over is: “so our customers can take advantage of the benefits of this technology as it evolves versus languishing on an outdated network.

Vodafone customers with UFB fibre connections already have VoIP calling. Until now FibreX customers have used copper lines for traditional phone calls.

The company says it will send customers detailed information and provide support before the upgrades start. For most the change will mean no more than unplugging existing phones from the wall and plugging them into a broadband modem or router.

There may be issues for people with alarm systems that use copper phone connections.

Vodafone’s move to VoIP is a long way ahead of necessity. While Spark said it would close its PSTN service, that’s a five year process. It means replacing hundreds of telephone exchanges and network nodes with three new nodes.

New Vodafone VoIP business plans

Vodafone will offer business users new all-in-one packages that includes voice calling and internet. The Office Net Unlimited plan is for VDSL users, Office Net Unlimited is the fibre version. Both plans cost $100 a month but require customers to sign for a 24-month term. As the name suggests, the plans include unlimited voice calls.

Office Net and Office Net cost $110. They include 200GB of data and 500 minutes for calls to anywhere in the world.

Vodafone VoIP transition to start this month was first posted at billbennett.co.nz.

Commerce Commission Monitoring ReportLast week Spark boss Simon Moutter told shareholders at the company’s AGM it is cheaper to win customers through merger and acquisition than through market efforts.

The NBR reports him saying: “We expect to see, and participate in, significant consolidation of the retail broadband industry over the next couple of years.

Give that Vocus NZ is on the market, it’s not hard to join the dots here. We can assume that Spark NZ is interested in buying some or all of Vocus.

If Spark buys Vocus NZ

There are other assets, including the fibre network built by FX Networks. But taking Moutter’s AGM comments at face value, Vocus’s broadband business is in his sights. That’s CallPlus, Slingshot, Orcon and a couple of minor brands.

Let’s assume the price is right and Spark is able to beat any rival bidders. What does this mean for market competition?

It all depends on which market you’re looking at. If we take the total New Zealand retail telecommunications sector as a whole, a Spark-Vocus acquisition would not change much.

A good starting for measuring market share among significant players is the 2016-17 TDL liability allocation determination drawn up by the Commerce Commission.

This is used to work out each telco’s share of the Telecommunications Development Levy. Only sizable telcos pay the levy, their share is proportional to the company’s share of the total qualifying revenue. In effect this number is the company’s share of the retail telecommunications market.

Spark dominates

Spark is by far the largest market player with a 35 percent share of the industry qualified revenue. Vocus is the fifth largest company on the list, but its share is a shade over three percent. Add the two together and the list looks much the same as before.

On this basis there is almost no obvious reason for the Commerce Commission to object to Spark NZ buying Vocus. The market dynamic would be almost the same as before.

The almost in that last paragraph is because the Commerce Commission’s Annual Telecommunications Monitoring report for 2016 shows Spark’s share of fixed line retail revenues as a line item. It has been falling for a decade.

By implication, Spark’s falling market share shows competition is working. If Spark acquired Vocus NZ, this figure would tick up. That may or may not be enough to ring alarm bells. Yet, while the Commerce Commission may not relish industry consolidation, it can’t necessarily stand in the way of bigger-picture market trends.

Broadband market

Retail broadband market share NZ 2016

Things get tricky if the Commerce Commission decides competition is important in the broadband market.

Spark is the largest broadband retailer with a 46 percent market share. Vodafone is number two with a 29 percent share. Vocus is the next largest player with 14 percent of the market.

The three top broadband retailers have 90 percent of the market.

Add Spark’s broadband market share to Vocus and you have a company with 60 percent of the market.

Spark is already the largest and in every respect it dominates. Yet to go from 46 percent to 60 percent would reset the market.

If Vodafone were to buy Vocus NZ, it would still have a smaller market share than Spark. The two would be, in effect, on equal footing.

Vocus NZ sale and broadband competition was first posted at billbennett.co.nz.

Chorus active wholesaleComputerworld New Zealand reports that Chorus says it has moved to ‘active wholesale’ to stem the loss of customers to rival networks.

The story covers comments made by Chorus CEO Kate McKenzie at the company’s annual general meeting. She says the number of connections on the Chorus network has fallen following Spark’s move to push customers to its fixed wireless broadband services.

She says: “Total connections reduced by about 125,000 last year and by a further 20,000 in the first quarter to the end of September”.

From passive to active wholesale

To deal with this Chorus has moved from being a passive wholesaler to taking a more active role.

In response, McKenzie said Chorus had “gone from being a passive wholesaler to being more active in the marketplace. We can’t rely on all retailers to promote our products for us when they have their own competitive motivations.”

Among other things this has led to a Chorus information campaign highlighting the performance benefits of fibre broadband over a wireless service.

There has also been advertising promoting fibre. McKenzie told the AGM this is already showing results with defections to wireless slowing in recent months.

Follow the money

It’s not hard to understand why Spark wants to move customers on to fixed wireless connections. It makes a lot more money that way.

When a customer buys a fibre broadband connection from Spark, the company pays around $40 wholesale fee to the fibre company. In much of the country that’s Chorus, but the same applies in areas serviced by Northpower, UFF and Enable.

The wholesale cost of a line is around 40 to 50 percent of the price Spark charges its customers. So cutting out the wholesale level means better margins and greater profit. There’s enough room to pass some of the saving back to the customer.

Control

Aside from the money, a fixed wireless connection keeps everything under Spark’s control. It means it becomes less reliant on others. At the same time, it regains some of the benefits of vertical integration.

In a normal market this would give Spark leverage to negotiate better rates from the fibre companies. Spark is by far the largest buyer of broadband connections, so it could expect something for economy of scale and something else to counter the wireless broadband threat.

That’s not how New Zealand’s open access fibre broadband market works. Prices are regulated by the Commerce Commission, fibre companies are not allowed to play favourites. They can’t offer one rate to Spark and a different rate to other players.

The wireless threat

When this model was first drawn up, wireless wasn’t a serious threat to fibre. At the time I asked then Communications Minster Steven Joyce if the rapid development of wireless broadband had been considered, he said it had not and dismissed the idea the technology could one day compete with fibre.

In a sense wireless broadband doesn’t compete with fibre. It can’t deliver high speeds and the big wireless operators have kept tight caps on data downloads to stop networks from overloading.

And yet not everyone needs gigabit speeds and vast quantities of data. Fixed wireless broadband is ideal for low-use customers. It also makes sense in areas where fibre is not available.

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