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Thread ID: 135462 2013-11-05 18:19:00 Chorus exagerating a bit ? Digby (677) PC World Chat
Post ID Timestamp Content User
1358848 2013-11-06 08:37:00 Yes, its a tricky one If the govenment step in and keep Chorus's charges higher, we all miss out on lower copper BB charges.

If they don't step in, then copper charges drop and there is less incentive for punters to move to fibre.

I suppose the government should be looking long term.

Is it in NZ's interest to get rid of copper and just have fibre in the main towns?
I suppose the technical answer is yes.

Yes it is expensive to maintain. Verizon found that out when hurricane Sandy hit New York last year and they lost power to their cable pressurization system and lost all their coper to down town NYC. There was a quick rush to put in fiber. As long as coper stays in use they have to maintain the cable air supply and repair faults in the winter when cables leak....
paulw (1826)
1358849 2013-11-06 09:34:00 But you can't ignore (pre-split) Telecom - it was that idiot Rod Deane who saddled Telecom with a huge debt; most of which Chorus has been left with and have to service.All the more reason for the government not to interfere with the ability of Chorus to make a profit, I would have thought... johcar (6283)
1358850 2013-11-06 18:34:00 Yes it is expensive to maintain. Verizon found that out when hurricane Sandy hit New York last year and they lost power to their cable pressurization system and lost all their coper to down town NYC. There was a quick rush to put in fiber. As long as copper stays in use they have to maintain the cable air supply and repair faults in the winter when cables leak....

Wow, that is interesting!
Digby (677)
1358851 2013-11-06 20:06:00 If this fiasco proceeds, and with the Gov't plus chorus involved it is likely, I will celebrate by buying a new car. This will be financed by imposing a levy on all older car owners. ;) R2x1 (4628)
1358852 2013-11-06 22:24:00 I see the government is now to launch an independent inquiry into Chorus finances and their ability to complete their contractual obligations on the fibre.!

That will sort things out.

I hope they loose more of that contract and that it goes to the other organizations.
They got too big a share of it I think.
Digby (677)
1358853 2013-11-07 00:44:00 Yeah. The gov with chorus gives a partnership of two equally honest and capable parties.

:tui:
R2x1 (4628)
1358854 2013-11-07 00:50:00 Wow, that is interesting!

There was a fantastic article about it with some really cool pictures, will see if I can find it.
wratterus (105)
1358855 2013-11-07 03:13:00 I hope they loose more of that contract and that it goes to the other organizations.
They got too big a share of it I think.

What, you'd rather another company duplicated half their efforts considering Chorus already have FTTN? Meaning less money overall for getting *actual* Fibre from the node to the house, because they've instead had to invest in other infrastructure?

IIRC Chorus invested in 3,600 cabinets, each cabinet cost them $150,000 to deploy (Unsure if that's JUST for the cabinet and install, or if that also includes fibre etc to it, but we'll go conservative and presume its all inclusive just for the sake of the argument), which is roughly half a billion dollars... Which will then have to be duplicated by another provider (To a certain degree) while they do FTTH as part of the UFB project?
Simple maths tells you that doesn't seem clever....

Half a billion of brand new infrastructure that already exists and can be re-used vs doing it *all* from scratch? Which seems the wisest choice? :p
Chilling_Silence (9)
1358856 2013-11-07 06:24:00 VDSL ?

The whole world is moving to fibre!

We have to keep up with the times, or get left behind with old technology and street cabinets and software etc etc.
The whole world, except my street well not till the end of next year and I wasn't prepared to wait so vdsl it is. And like others, very happy with it...
plod (107)
1358857 2013-11-07 10:25:00 Word on the street is it'll cut their income from it down from 150 million PA to 120 million . . .

30 million a year for a few years . . Yet they've been given some 1 billion+, from the Govt towards the rollout? Yeah some things not quite right :p



Yes Chill, it sounds simple . But lets imagine your mortgage required $130 million a year . $120 million sounds nice but you'd be bankrupt .

What we have here is a business building a huge and difficult infrastructure on the basis of known finances . Suddenly a remote third party (the Commerce Commission) tells them they must cut their fee by 17% or 25% etc .

How many people here would be happy and financially secure is they were forced to reduce their hourly rate by that amount?

The CCC might very well be correct but is destroying a NZ business out of the blue actually good for anyone?
Winston001 (3612)
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