Bridges introduces Telecommunications Amendment Bill

Earlier this week Communications Minister Simon Bridges introduced The Telecommunications Amendment Bill to Parliament. The bill sets out to update regulation for the fibre era, following the government's announcement in June of its reform plans. If it passes it will come into effect from 2020.

The important word in that sentence is if. Parliament breaks for the election at the end of next week, the bill’s first reading is set to happen next week, from that point its fate depends on who forms the next government. It’s possible a Labour government or one including New Zealand First may revisit some aspects of the proposed legislation. 

Should it pass, the bill would mean a major overhaul of telecommunications regulation. In Bridges’ words, among other things it will: 

-       introduce a more predictable utility regulation model for UFB fibre, 

-       deregulate copper lines where fibre is available, and 

-       increase regulatory oversight to help improve quality of service for consumers. 

A single, anchor fibre product

Some of the details include a look at changing fibre regulation so that the price is set only for a single anchor product. The idea is that this would be the most common plan chosen by consumers and would be a jumping off point for service providers to price the rest of their tariffs.  

As the bill is written today, the anchor plan would move from 30mbps to 100mbps. When the UFB project began in 2010, 30mbps was the entry level speed. For a short while it was also the most popular plan. Today, 100mbps is more popular, but many new customers opt for a still higher speed. There are gigabit plans. By 2020 100mbps might look dated. 

Deregulating copper lines where fibre is available will simplify the overall regulatory framework. It will allow Chorus to raise prices. Outside of UFB areas the price will stay at 2019 levels with. This could be tricky for Chorus, but over time the fibre footprint is likely to expand beyond the reach of UFB and, anyway, there are alternative for rural users including fixed wireless broadband from cellular carriers and the independent wireless internet service providers or Wisps.  

Another change is the move to what is known as the building blocks model to regulate Chorus. Under the proposal Chorus estimates costs, adds a fair return on the investment. This means Chorus will be treated more like other utilities, although it will be subject to a revenue cap. 

Chorus backhaul starts with 2degrees

2degrees has signed a multi-year backhaul contract with Chorus. The deal replaces a mix of services from providers including Spark and Vocus.

The network will connect UFB points of presence and data centres to the international network. 2degrees says it now has a fully diverse and highly resilient network that transports voice and data worldwide.

It’s a strategic move for both companies. At 2degrees it marks the latest step as the seven-year-old mobile carrier emerges as a full-service telco. It is now New Zealand’s third largest retail telecommunications carrier.

Future proof

Mark Petrie, 2degrees chief fixed officer says: “By combining 100Gbps links into our network we’re future proofing our ability to support the ever-increasing data demands of the country’s largest enterprises, for whom having this capability is critical.”

The deal marks the first national customer to sign for Chorus’ 100Gbps nation-wide fibre backbone network. Chorus’ chief commercial officer, Tim Harris describes 2degrees as an important strategic partner for Chorus.

While it is an important business win for Chorus, there’s an even greater significance. It marks the national wholesale network provider’s move away from regulated monopoly services into a more competitive space. This gives Chorus a route away from settling down as a mere utility provider into more commercial areas.

Spark adds Cambridge, Turangi to 4.5G network

Spark says it has switched on 4.5G at cellphone towers in Cambridge and Turangi. These joint the 4.5G towers in Christchurch, Silverdale and Queenstown. 

There are now a total of 10 4.5G towers nationwide. Spark says over the next year it will roll out 4.5G to ten towns around New Zealand. 

Both new towers will be used for fixed wireless broadband as well as mobile. 

Spark is moving fast to 4.5G. It's noticeable that, to date, neither Vodafone or 2degrees have made any public moves or announcements in this direction.

4.5G is preparing for 5G

Of course, the real story here is that Spark is paving the way for a transition to 5G. Industry insiders expect the new standard to appear in its finished form early next decade. Spark marked out its turf. It wants to lead on 5G.

One aspect not widely discussed is that many telcos, presumably Spark is one, will make adjustments and upgrades to 4G before moving to 5G. Industry insiders talk of 4.9G.

Further down the press release Spark mentions the new towers will also be used for fixed wireless broadband. It will be interesting to see how it performs in these places given the reports of problems in some other spots.

Spark admits today’s handsets and wireless modems don’t allow users to get all the benefits of 4.5G. Yet, owners of modern phones will get most of the performance boost. You can expect to download data three to five times faster than on today’s cellular networks.

Cert NZ first threat report shows scale of online crime 

Cert NZ received 364 reports of online security incidents involving financial losses in the first three months of operation. Total losses for the period amount to more than $700,000. Cert started in early April and the period ended on June 30. It was the organisation's first formal report. 

The government set up Cert NZ in the 2016 budget when it was allocated $22.6m. Its role is to act as a clearing house for all cyber security issues. 

Cert NZ says it noticed an increase in reports after the WannaCry ransomware attack in mid-May. Immediately after that time there were no ransomware reports for two weeks. It's not clear if that was a result of reporting fatigue or that increased public awareness meant there were fewer infections.

Vodafone deal see TeamTalk full-year profit double guidance

TeamTalk says it made a net profit of between $4.7 and $5.1 million last year. This is better than double the $2 million to $2.4 million guidance figure it gave in the company’s first half result. Last year TeamTalk made a $1.3 million loss. The extra profit comes from the $10 sale of 70 percent of BayCity Communications, Farmside’s parent company, to Vodafone. 

Reannz funding secure until 2024

Science Minister Paul Goldsmith has announced a $21 million investment in Reannz, the government-owned Research and Education Advanced Network New Zealand. The money will be paid over the next seven years from the Ministry of Business, Innovation and Employment's Strategic Science Investment Fund.

Reannz chief executive, Nicole Ferguson, says the funding is an opportunity to review the network services model and make sure it stays relevant for members’ needs. She says: "Globally, research is becoming increasingly data-intensive. This strategic investment will assist us to ensure New Zealand can not only participate, but remain at the competitive edge of science and research".