Vodafone faces 27 Fair Trading Act charges

Vodafone's decision to rebrand its hybrid fibre-coaxial network as FibreX has landed it with 27 charges under the Fair Trading Act. The move follows an extended investigation into Vodafone's service and the way it has been marketed.

Last Friday the Commerce Commission laid the charges which relate to misleading conduct in the three regions where Vodafone offers FibreX: Wellington, Christchurch and Kapiti. The cases in question took place between 26 October 2016 and 28 March 2018.

According to the Commerce Commission the name FibreX and its advertising on billboards, radio, in-store, online and in direct marketing misled potential customers into thinking they were buying a service like Ultra-Fast Broadband.

Not the real thing

While FibreX can offer good performance and fast installs, it is not true fibre to the home.

FibreX runs on the HFC (hybrid fibre-coaxial) network Vodafone took over when it acquired TelstraClear. For a long time it had questionable performance. In 2016 Vodafone invested in the network and upgraded it to the point where it could deliver fibre-like speeds. For a while the company talked about gigabit internet.

Unlike UFB which runs a fibre cable all the way to the home, FibreX uses fibre-fed street cabinets that connect to homes via a coaxial cable.

The company earlier explained that it chose the name because it is a contraction of hybrid fibre-coaxial.

Misleading look-ups

In addition to the branding and advertising, the Commerce Commission says Vodafone also misled customers when they used the website to look up the broadband options for their address.

Vodafone responded with a media statement: "We disagree with the charges laid by the Commission and welcome the opportunity to defend the naming and marketing of FibreX and reinforce the benefits of this service.

In places the statement reads like marketing. Vodafone describes FiberX as "super-fast" and "reliable" it says it "would also be more affordable and offer a better installation experience".

The case is due before the Auckland District Court on May 22.

Spark to stream Rugby World Cup

Spark and TVNZ have won the rights to broadcast the 2019 Rugby World Cup. While some games will be shown on free-to-air old school television, fans will need to pay a fee to watch Spark’s streaming coverage.

The two companies confirmed their bid won the New Zealand television rights in a joint media release on Monday.

Spark managing director Simon Moutter says both the free and paid games will be available to all New Zealanders – not just Spark customers.

Spark looking at 4K, even 8K coverage

The tournament is taking place in Japan, so is likely to be covered using 4K technology and may even include some 8K coverage. This could see a surge in demand for television hardware able to make use of higher definition pictures. It’s also likely to mean more demand for fibre connections.

While some rural customers may not be able to stream the games, the number is likely to be only a few percent of the total population. However, rural New Zealand is the Rugby heartland.

By the time the Rugby World Cup kicks off the first phase of the nationwide UFB fibre roll out will be complete and the subsequent fibre build will be well under way. At least 80 percent of the population will have the ability to connect. Most of the remainder will either have access to Rural Broadband Initiative wireless towers or copper-fed VDSL connections. Some will be covered by wireless internet service providers or wisps.

Affordable

Interviewed on Radio New Zealand, Moutter says the price will be lower than most people would expect. He says a tournament pass would cost somewhere in the region of $100. It will also be possible to buy the right to watch individual games.

Fans will be able to watch on television sets but can choose to use most popular digital devices include computers, tablets and phones. Spark will offer a downloadable app. Games will be broadcast live, but there will also be a catalogue of on-demand games.

The 2019 Rugby World Cup is the jewel, but the package Spark and TVNZ purchased includes the 2021 Women's World Cup, the 2018 World Cup Sevens and 2018 and '19 World Rugby U20 Championships.

TVNZ says it will screen seven 2019 Rugby World Cup matches live on its free to air service. These will include the opening match and the final. It also says it will not show advertisements during game time.

InternetNZ shuffles team following restructure

InternetNZ has a new leadership team following the merger of the organisation with the registry business NZRS, the .nz registry business. In the new organisation former InternetNZ deputy chief executive Andrew Cushen will become outreach and engagement director. Meanwhile community programme director Ellen Strickland moves to group policy director .

Dave Baker , previously CTO at NZRS will become technology services director while Sebastian Castro will remain as chief scientist. The organisation is looking to recruit an organisational services director and a commercial director.

Vocus looks at alternatives to selling NZ business

Writing at the National Business Review Chris Keall reports on comments by Australia's Macquarie Bank which says if Vocus can't get a good price for its New Zealand operation it may attempt an equity raise instead.

Binding bids for the company are due at the end of this month. Vocus wants any sale completed before the Australian financial year closes at the end of June. The company has previously said it wants A$500 million for the New Zealand business.

Keall says 2degrees has dropped out as a potential bidder leaving Trustpower. He says a last minute bidder has appeared Canada's Brookfield Asset Management.

Other possible bidders have stayed away because the short deadline on the deal makes it hard for rival telecommunications companies such as Spark to get Commerce Commission clearance in time.