Broadband in NZ– VLENZ Update, No 181, March 13, 2011

The  New Zealand Broadband network

Rural Kiwis  probably wont see

‘true’  Broadband  for decades

… will Christchurch quake slow implementation

of 2nd-best  RBI solution

Telecom's Dr Paul Reynolds ... rebuked for honesty.

With the government concentrating on the post earthquake resurrection of Christchurch – and the money needed to rebuild that city – one wonders whether the Rural Broadband Initiative which has been badly fumbled, will quietly fade into the woodwork.

And will  New Zealanders outside the main centres and Telco hubs continue to be left in the 20th Century with less than adequate Broadband?

Of course, it is understandable that the contract, which has been awarded to the old-style,  not-likely- to-deliver the Broadband needed for the nation, Telecom/Vodafone consortium with its outdated backward-looking technology, may  go on the backburner.

But one has to ask is  even  the  out-of-date solution to be thrown out with the demolition rubbish from the Christchurch earthquake.

Not that it really matters I suppose because one has to wonder whether the  Government and its advisers on the RBI  ever really wanted to have a competing future-oriented Broadband network outside the main cities.

‘Marketing carrot’

This was made clear by Telecom chief executive  Paul Reynolds, who earned a rebuke for his honesty from the Government, when he  forecast (before the tender was awarded) that it could take two decades for consumers to upgrade to ultrafast Broadband. Dr Reynolds said, although it is clear the Government intends the network should be completed by 2019, it would take at least as long again for all households to start using it. “Twenty years is the number for the progressive uptake of fibre services,” he said.

His remarks mirrored those of the Telstra-Clear NZ chief executive of a few years ago who  said he saw no need for fast broadband  in New Zealand.

FX Network's Murray Jurgeleit ... RBI future-proof solution rejected.

Despite  remarks like these the  major Telcos are still promoting  and selling Broadband throughout New Zealand  at exorbitant rates which they cannot deliver  at consistent Broadband speeds.

Even Telcom’s latest television promotion for its Broadband service fudges the fact that if you join without contract – a “marketing carrot” – you still have to pay $NZ90 to leave, exactly the same  as you would have had to pay if you had a contract, even if  the organisation cannot deliver consistent Broadband speeds.

The worst part of it is that, as the promotions attract more people to Broadband in provincial NZ,  the more the telcos’ services  degrade, particularly outside the main centres and the less reliable and consistent it gets at times of high bandwidth usage such as school holidays, after school and on wet, miserable winter weekends, the times when the average man, woman and child wants to use it.

The Government did have the option of future-proofing Broadband services for the country but failed to take the chance  apparently accepting the Telecom/Vodafone  solution which basically is slow 3G wireless and fast DSL over copper. This was probably because it was advised by those whose hearts have always been with the big players.

The major alternative was and still is the fibre and 4g wireless solution put forward by FX Networks with Opengate (Kordia & Woosh) which would have delivered much faster Broadband to far more rural users than any alternative.

Simply put  the OpenGate/ FX Networks  solution would have delivered a $NZ285m,  10 Mbps or more Broadband connection to 83 percent of rural New Zealand – a third of the country’s population which generates two-thirds of its export income – for as low as $NZ60 per month, with access from within two years – not six as posed by the Telecom consortium.

‘Choice, innovation, competition’

In a press release last month FX Networks Managing Director Murray Jurgeleit said, “In addition to the low prices, we have proposed to deliver extensive new infrastructure for our rural communities. We are committed to delivering guaranteed performance through the latest technology to put us ahead of our international trading partners.

“We can create an environment of choice, innovation and competition to ensure rural New Zealand is well served in Broadband technology for years to come.”

And Kordia CEO Geoff Hunt  who expressed disappointment at the outcome of the tender process, said that OpenGate would have connected a customer at full speed 40 kms from a wireless site,  a significant advance on what could be achieved with copper.

“The combination of fibre and 4G wireless technology enables us to very quickly deploy high-speed broadband to many more rural Kiwis,” he said.
The OpenGate/FX Networks consortium offer was based on the same advanced technology (4G LTE) that’s being installed in Australia, the US, China and India as an upgrade to aging and congested 3G networks.  Hunt said that this technology meant that any individual tower could be scaled up to deliver more than 1.7 gigabits per second, enabling hundreds of users to have ultra-fast Broadband off a single tower without slowing down service.

Geoff Hunt, Kordia ... an opportunity lost

“They (the Government) say they’re going to a proven technology with copper – it’s so proven that it’s being replaced by fibre everywhere,” said Kordia ceo Geoff Hunt.

“The opportunity to deploy much better broadband has been lost. It is really disappointing,” he said.

He claimed the Government decision, and I agree,  has effectively condemned rural communities to suffering from same old duopoly services that continue to under-deliver and hold rural New Zealand hostage.

“The government had an opportunity through the RBI to provide a technology step-change in services for rural New Zealand that would have laid a future-proof and highly competitive foundation for the next 15 years.

Not an “up-to” speed offer

He pointed out that the OpenGate/FX broadband network would have delivered 100 Mbps to rural schools, 10 – 20 Mbps to 83 percent of rural New Zealanders and an impressive 20+ Mbps to 67 percent of rural Kiwis.
“We can support a lot of people on the internet at these impressive speeds at the same time … we are offering 10 Mbps at better prices than in the cities today – not an “up to” offer,” he said earlier. “New Zealanders are sick and tired of high contention ratios and actual performance that bears no relation to advertised “up to” speeds.

I can concur with that having argued with both Telecom and  Telstra that the speeds they were and are delivering Broadband –  even in provincial centres let alone rural areas – is often more like dial-up than Broadband despite them charging  outlandishly for the service.
The OpenGate/ FX Networks’ infrastructure would have been separate and distinct from the existing copper and 3G networks, and it would have fostered much needed head-to-head competition with the moribund Telcos.

Now sadly it looks as though many of today’s rural New Zealanders probably will not get “real” Broadband at their homes in their lifetimes, even with the latest advances in copper wire technology.

This will only serve to place  rural  residents – adults and students – at an even greater disadvantage to their city cousins in a world where consistent, reliable fast Broadband is becoming a necessity rather than a luxury, especially in the area of distance education.

KAREN, VLENZ Update 171, June 01, 2010

KAREN goes  ‘independent’

NZ high-speed research/education

network in new partnership …

All NZ education to get real Broadband speeds

A year-old YouTube view of the FX Networks network  …
2200 kms of optical fibre and still counting.

Heralding a new era for online education and research  in New Zealand, Research and Education Advanced Network New Zealand Ltd (REANNZ) has announced  that it has  entered into a long-term partnership with the country’s foremost, independent optical fibre network provider,   Wellington-based  FX Networks,   to provide the national connectivity for the Kiwi Advanced Research and Education Network (KAREN).

The arrangement secures the continuation of KAREN’s existing 10Gb/s backbone connectivity and footprint around the country for an initial term of  three years through to December 2013, with two two-year renewal options.

The move should mean lower cost, and faster and more reliable  national bandwidth options for New Zealand tertiary and secondary education institutions, and could lead to a proliferation of virtual world and other third generation uses of the internet by  both faculty and students in education across the country. When coupled with other moves, it  should also provide benefits to distance learners.

Donald Clark, REANNZ

The Universities of Auckland, Otago and Canterbury, along with Weltech, in Wellington, are already operating a bandwidth-hungry,  OpenSim-based virtual world system (New Zealand Virtual World Grid) in test phase in conjunction with the KAREN network  which can only benefit from the latest development, which should ease both access and costs, especially  as NZVWG only uses local bandwidth, rather than international connections.

The decision to go with FX Networks  follows  what spokespeople for the two partners described as “a thorough and comprehensive evaluation process.”  The KAREN network has previously worked directly with  Telecom.

The contract also includes options to move KAREN to a dark fibre-based network infrastructure, which will be essential to ensure KAREN can continue to offer leading-edge network services within a constrained cost base.

The CEO of REANNZ, Donald Clark,  said, “This is the most exciting development for KAREN since the network was launched in 2006. We are confident that we have selected a progressive, long-term partner in FX Networks and have secured the best national connectivity options for our community and provided certainty to our members on cost and presence.”

“Over the last four years, the demands of our members has driven innovation in network supply and services across the telecommunications industry,” he said. “In earlier times our investments have helped other network suppliers extend their networks, now we’re helping FX Networks.”

Through moving to the new network, REANNZ will put into effect a new Network Access Policy which  will provide greater flexibility to REANNZ and KAREN members around access, and use of the network. The network is currently recruiting a number of secondary  schools to add to its current tertiary institution base.

A virtual region on the Weltech portal of the 'alpha' test NZVWG Grid .... online and MUVE education can only benefit from the latest KAREN move.

Work has already begun on comprehensive transition plan to ensure a smooth cross-over from current national connectivity arrangements to the new arrangements in December.

REANNZ is currently in the  late stage contract discussions with the preferred supplier for KAREN’s international network. An announcement on the selected provider will be made later this month.

FX Networks already has completed most of an optical spine the length of the country and is completing   a network right around the country to join with the spine – a number of  local bodies like those  controlling Hawkes Bay, Pahiatua, Dannevirke and Eketahuna among others   have already signed up with FX Networks –  which should make access to  KAREN  and true high-speed broadband internet an affordable reality for most  institutions as well as distance education students.

Jamie Baddeley, FX Networks

Previously, despite claims to the contrary, the major Telcos in New Zealand  have supplied  provincial New Zealanders  with Broadband, which they pay Broadband prices for, but which  generally  have not delivered consistent Broadband speeds. In fact,  in areas like the Manawatu, consumers, although paying Broadband prices, have often been left with a service, during  times of high contention, which   has run at dial-up speeds.

FX Networks’ fibre optic ‘backbone’ network  covering both islands of New Zealand, however,  is the fastest independent intercity pipeline in the country, capable of transferring data and voice at speeds up to 10Gbps.

The organisation describes its   network as a  ” a ‘green fields’ operation, our 21st Century technology and lean business practices mean we can deliver a Ferrari-type network for Corolla-type pricing.”

The company is privately owned and funded, with 30 percent equity held by New Zealanders. It is independent from the Telcos  operating in New Zealand.

FX Network’s partnership with REANNZ  follows the announcement  in April that FX Networks  had signed an agreement with Telecom Wholesale for the exchange of local internet traffic (local peering) at 19 of  Telecom’s points of interconnection – 39 currently available) around the country,  laying the groundwork for the “most efficient routing” of New Zealand’s growing volumes of Internet traffic through New Zealand’s two main internet backbones.

One of the regions on the University of Auckland portal of NZVWG grid which should benefit from both the KAREN decision and local "peering."

Peering allows traffic to be exchanged on a local or regional basis rather than transported back and forth throughout the country to be exchanged in Auckland.

Announcing this agreement the two companies said, “With the Government’s $1.5bn ‘Ultra Fast Broadband’ and $300m ‘Rural Broadband initiatives both on the horizon, the agreement paves the way for a whole new range of competitive broadband packages to be developed by ISPs and other service providers.”

FX Networks Jamie Baddeley said at the time of the agreement  that it meant  that the Governments investment of $1.8bn in urban and rural broadband “will now be able to run local content in a fast and efficient manner.

“This is a big step in New Zealand’s digital transformation that will revolutionise many aspects of society including health, education, commerce and entertainment,” he said. “…  I think many ISPs are going to have to rethink how they charge for traffic and there will now be competitive pressure to separate international traffic from local usage and charge accordingly.”

Ernie Newman, TUANZ

Senior industry consultant Dr Murray Milner said: “This is a very positive outcome with the industry tackling a major issue that is fundamental to the success of the current fibre roll-outs. Local peering means that internet backbones will not be clogged up with local traffic and we will see smart uses of the capability in areas like healthcare where digital X-rays can be shared simultaneously in full definition.”

Ernie Newman, CEO of TUANZ said: “Peering has been on the table for a number of years as one of those too hard issues, after some carriers depeered from the earlier system a few years ago. It was the users who bore the brunt of that with traffic romboning to Auckland when it didn’t need to, or worse to the USA. I’m delighted to see industry players resolving this issue without the need for regulation or government intervention and users will benefit from better performance and lower charges. What’s emerging is the national digital architecture that TUANZ has been calling for.”