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Thread ID: 63286 2005-11-04 06:45:00 Internet growth strangled by monopoly Bisdale (7228) PC World Chat
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401818 2005-11-04 06:45:00 This is a persuasive essay I wrote for my year 10 English teacher. I did it on my frustration over New Zealand internet. Comments would be excellent.

Internet growth strangled by monopoly

They way forward for the internet in New Zealand needs to be through high upload and download speeds at affordable prices. Additionally the cap on bandwidth must be stopped. Access should be available to all users through the current phone lines. There needs to be no artificially created problems and an end to the internet monopoly by Telecom.

At the moment the maximum residential download speed is 2mbs (Megabits per second) and the maximum upload speed is 128kbps (Kilobits per second). The cost of this is up to $70 per month for 10gigabytes of bandwidth. If you use of Telecom’s competitors for toll calls the package costs an extra $10. These prices are significantly higher than other countries such as; Canada where you pay $36 a month for 3mbps with no bandwidth cap or Hong Kong which offers 100mbps and no bandwidth cap for $30USD. Telecom blames the high pricing of its packages on New Zealand’s slow broadband uptake. What seems more likely is that New Zealand has been so slow to buy into Telecom’s broadband because it is far too expensive for what you get.

Currently the New Zealand residential phone lines are capable of internet speeds of up to 7mbs. Telecom only allows 2mbs. They seem to be using their power to maintain this restriction. Telecom has no right to slow our internet this much; as after all, the phone lines were owned by the people of New Zealand in the first place.

Another issue is artificial latency. Latency otherwise known as “lag” sends data packets in bunches instead of a continuous flow. Online Internet Gamers are unable to participate in online games which require a fast latency free connection. This is because Telecom artificially adds latency to the country’s internet stopping online gamers from high speed action online.

It is fine for a company to restrict what it offers; but when in a monopolistic situation, restricting what others can offer is abusing the company’s powers. Telecom restricts the use of Voip (Voice over Internet Protocol). Voip enables users to make free calls through their internet connection to other people online. Telecom does this because it does not want to lose out to newer, better technology, consequently losing its monopoly on the New Zealand land line phone market.

Another problem is New Zealand web hosting. Companies wanting competitively priced web hosting are being forced to seek overseas hosts because New Zealand hosts are too expensive for the average business. This is because Telecom doesn’t allow unlimited bandwidth like America and other countries. Consequently New Zealand hosts are going out of business because of not being able to compete with the international market.

My solution is this. Telecom must be forced to allow the maximum upload and download speeds the New Zealand phone lines can handle. There must be no bandwidth cap and the artificial latency should be taken away. Telecom should lower its wholesale packages to allow competition from other ISPs (Internet Service Providers) to give New Zealanders fast internet at a reasonable price. The internet must have no restrictions and must allow a static ip address; to enable computer to computer connections without the use of MSN Messenger or other messengers. Voip must be allowed and Telecom should become a public service.

Overall Telecom is a terrible ISP and needs to change its attitude towards the New Zealand internet market. Telecom needs to get real and offer reasonable internet at affordable prices for all New Zealanders. Finally telecom should remain a New Zealand an ISP but should not own the New Zealand land lines giving all New Zealand ISPs an equal footing on the New Zealand market.

- [edit]
Bisdale (7228)
401819 2005-11-04 06:55:00 might be a bit long but apart from that it is good what level english is it for sambaird (47)
401820 2005-11-04 07:03:00 Year 10, My english teacher pulled me up after class and told me I haven't handed him one good text this year. So I spent a long time on this one and I felt it was relevant for a computer forum. Bisdale (7228)
401821 2005-11-04 07:14:00 Nice. Though I think posting it online would mean that, it could be plagarised... :confused: bob_doe_nz (92)
401822 2005-11-04 07:14:00 This is because Telecom artificially adds latency to the country’s internet stopping online gamers from high speed action online.This is untrue, DSL by it's nature adds 60ms latency give or take.

QoS may add some more, but it's not an intentional disruption.

Another problem is New Zealand web hosting. Companies wanting competitively priced web hosting are being forced to seek overseas hosts because New Zealand hosts are too expensive for the average business. This is because Telecom doesn’t allow unlimited bandwidth like America and other countries.This is untrue. There are stacks of different bandwidth providers in New Zealand. Teleceom JetStream restrictions have no impact on the hosting business, as no respectable hosting company would be running on a DSL connection.

Companies overseas just have greater economies of scale which allows for significant cost lowering.

The internet must have no restrictions and must allow a static ip address; to enable computer to computer connections without the use of MSN Messenger or other messengers.Static IP's for everyone is unrealistic. ISP's rely on oversubscription - it's a fact of life - and reusing IP addresses from a dynamic pool assists greatly in overhead reduction etc. Those security freaks argue that a static IP makes you "more vulnerable to hackers".

A static IP is not a requirement for the average home user, those that want one can have one, there are no network restrictions. Hell you can have routed subnets if you really want, but it's an additional service and should be expected to be charged for.

Computers can directly connect to each other with dynamic IP's no problem, there's never been a need for MSN messenger to do that.


Voip must be allowed and Telecom should become a public service.VoIP is allowed, and works pretty well. Telecom _was_ a public service, they're not any more, and the govt could never afford to buy them back.
ninja (1671)
401823 2005-11-04 18:48:00 Telecom has no right to slow our internet this much; as after all, the phone lines were owned by the people of New Zealand in the first place .

Telecom now owns the infratstructure . They can do what they like . If you sell your car do you have the right to tell the new owner what to do with it?




Another problem is New Zealand web hosting . Companies wanting competitively priced web hosting are being forced to seek overseas hosts because New Zealand hosts are too expensive for the average business .


Oh really . I have my web hosting with Orcon . The company is here . Their servers are here . The helpdesk is here . Admin is here .
The fact its all HERE is why I chose them - couldn't care less who had the cheapest . And I don't think its particularly expensive either . . .
pctek (84)
401824 2005-11-04 19:17:00 Ben, first off, congratulations on having the confidence to post your essay here for the world, even Metla, to see. Secondly, tech info aside, your writing is readable, which is more than most year 10 students or even many adults! Are you in a top stream or a private school? Honestly, most secondary pupils could not write at this level.

Now for a tech question (which I have been thinking of posting as a new thread).

Are the problems with low broadband speed here in NZ due to a limited undersea cable? I recall about two years ago that a new Pacific cable was being laid but I wonder if by now the traffic this cable is carrying has reached capacity?

For that matter, are undersea cables still the way that internet traffic is handled or can satellites carry such huge loads?
Strommer (42)
401825 2005-11-05 00:10:00 It seems, I need to stop using the New Zealand Herald as my main information source . Thankyou for the input ninja, pctek and Steve_L . I will try and incorporate your input into my essay and repost it tomorrow or whenever I get time .

For the people rebutting over webhosting please remember I am speaking from the point of view of someone who doesn't have a full time job/still getting pocket money . I haven't seen a New Zealand hosted webhosting package that comes close to sites like . hostingplex . com/," target="_blank">www . hostingplex . com http://www . hostedfx . com/ etc .
Bisdale (7228)
401826 2005-11-05 00:45:00 I agree with the others....a neat piece of writing for year 10 level. I am not sure what persuasive writing is (although I can probably guess from the title) and/or whether the exercise is to provide a technically correct article, or to show that you can express your argument in a grammatically correct fashion. I would say you have achieved the latter and admire your ingenuity in submitting it in this fashion.

As far as a few perceived inaccuracies are concerned, a wise man once said "Never let the truth get in the way of a good story."
bazmeister (3216)
401827 2005-11-05 01:47:00 For the people rebutting over webhosting please remember I am speaking from the point of view of someone who doesn't have a full time job/still getting pocket money. I haven't seen a New Zealand hosted webhosting package that comes close to sites like www.hostingplex.com http://www.hostedfx.com/ etc.
Thats not what you said. You said "Companies wanting competitively priced web hosting are being forced to seek overseas hosts ".
As I said, I can get NZ support from mine. I can even, if I wanted to, get in the car and drive over and take a look at the server.
Who cares if its slightly cheaper half way round the world.
pctek (84)
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