Download Weekly: UFB price cap reset

Government tables Telecommunications Bill changes

Telcos will pay $46 for a wholesale 100/20 mbps fibre connection from next July. The new regulated price for a UFB anchor service was confirmed this week as the government tabled a supplementary order paper for the Telecommunications Amendment Bill. 

The revised legislation aims to set the regulatory framework for fixed line telecommunications in the fibre era. It was first introduced a year ago by the, then, National government and is expected to have its third reading in the coming weeks. 

Among other things it will move regulations to a utility model and remove unnecessary rules that are a hangover from the copper era. It also aims to increase oversight of retail service quality.

Expanded ComCom role

The act also expands the Commerce Commission’s monitoring powers to ensure emergency services remain available during power failures, which would otherwise knock out fibre. The commission will be allowed to conduct inquiries into any matter relating to the industry or for the long-term benefit of consumers.

Telecommunications Minister Kris Faafoi says the new regulated price: "...represents a fairer deal for everyone—a good price for New Zealand broadband consumers and a reasonable price for Chorus".

Chorus CEO Kate McKenzie said the release of the SOP provides some clarification. She says: 

“We welcome this step towards a new regulatory framework for New Zealand’s key communications infrastructure. We look forward to the passage of the bill and to starting work on implementation."

IDC gives UFB a tick, notes rise in telco partnerships

IDC's latest market report says New Zealand telcos are forming partnerships, not consolidating. Research manager Monica Collier notes Spark, Vodafone and 2degrees collectively formed the Rural Connectivity Group and the fibre unbundling alliance between Vocus and Vodafone.

Elsewhere she says telcos are “transitioning to become genuine digital services providers.” She also says the intense competition has led to great value for consumers. Collier calls 2018 a “watershed year for streaming content”.

IDC’s retail price tracker found that the price of an average unlimited fibre connection is now $83.25 per month. Taking sign-up offers into account this can drop as low as $64.40 per month.

Chorus, Nokia win global award for RBI work

Work on the Rural Broadband Initiative won the Best Broadband Delivering Social Impact award for Chorus and Nokia at the Broadband World Forum in Germany. The two companies worked to upgrade 1200 cabinets, deliver gigabit fibre to 1000 rural schools and upgrade internet speeds for 110,000 households.

Chorus CEO Kate McKenzie says: “Chorus’ key target of connecting all rural schools was particularly satisfying, as this has resulted in a major long-term benefit to the nation, and we are particularly pleased to observe the strong take-up of fibre by schools across the country."

One of the side benefits of connecting rural schools is that it enabled Chorus to build fibre-to-the-home connections for many rural communities. By the time the build projects are all complete, around 87 percent of New Zealanders will have fibre access.

Vodafone to sell Telstra managed security

Vodafone Security Management Services is a new division that plans to sell a Telstra-developed cloud-based managed security service to enterprise customers. The division will be headed by Warren Shera and will include 60 staff. Vodafone says Telstra's technology includes: "Artificial intelligence, event data and analytics supported by experts in New Zealand and Australia". Shera says: "The platform not only quickly identifies and explores cyber threats but is also able to see true mathematical anomalies.”

Spark in pole position Formula 1 rights

Spark Sport continues to build its portfolio, adding the local rights to Formula One and Formula Two motor racing. The company also picked up the GP3 Series and the 2019 Porsche Super Cup Series.

It has the rights for the next three years, with streaming scheduled to start with the Australian Grand Prix in March. Spark says subscribers will see 21 races a year plus practice sessions and qualifying rounds. There will also be a number of classic races from the past.