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Home / Business / Companies / Telecommunications

Telecommunications: We've come a long way from the bad old days

By Paul Brislen
NZ Herald·
14 Nov, 2021 06:00 AM4 mins to read

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Image / Getty Creative

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OPINION:

Twenty years ago I started covering telecommunications as a journalist. I'd been the Y2K reporter but the stories kind of dried up for some reason so I needed a new gig.

At the time, the sector was, as they say, "an issues-rich environment".

A former state-owned monopoly incumbent hell-bent on not giving an inch to challengers was still fending off both customers and competitors alike.

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Clear Communications had to get the Minister of Communications to intervene when it arrived so it would be allowed to offer toll calling (remember that) as a service.

The internet had arrived but at dial-up speeds and early attempts to offer "broadband" (a blistering 128 kilobits per second for most) was quickly shut down as not complying with industry standards.

Costs were high, options limited and the future looked bleak.

I'll spare you most of the chaos of the early 2000s with its light-handed regulation that did little to move the dial, and the mid-2000s with structural separation and again, not a lot of impact that the customer could see.

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The big change came in the late 2000s with this idea of building a replacement network that would offer fibre to the home. That, along with a more robust regulatory environment, saw an end to the dominant incumbent, the birth of competition and the chance to build a network that puts New Zealand at the top end of the rankings.

By the end of next year, the UFB (Ultra Fast Broadband) network will bring fibre to 87 per cent of the population.

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By contrast the UK has just 24 per cent of the nation connected to fibre and even Australia fares little better at around 30 per cent, at a cost of a staggering A$50 billion.

The public-private partnership that built our UFB cost around $2 billion and delivers gigabit speeds right to your door.

And what capability it is – during Covid lockdowns we saw record levels of usage as people turned from working in the office to working at home, alongside students studying remotely, movie watchers, TV bingers and all the rest that comes with a modern, capable network. Imagine doing that on your 1 megabit per second connection, all clustered round a desktop PC.

Likewise, in the mobile space we have three competing national networks – a level of competition per capita that is unparalleled in most comparable countries – all fighting for your dollar.

Today, you can get a calling plan that lets you phone anyone in New Zealand or Australia and talk for as long as you want. You can send and receive as many text messages as you want (remember when they were 25 cents each?) and you can stream movies, listen to music even send and receive work-related emails if you have to all for a fraction of what it cost only a few years ago.

This is the secret of the telecommunications sector in New Zealand today: costs have fallen across the board constantly while speeds and capability have increased exponentially. StatsNZ reports inflation has risen by 2.2 per cent in the September quarter, yet telecommunications costs continue to fall, and have done for a decade. Today you can buy more and do more with it for less than ever before.

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Telecommunications is a different place from when I first started two decades ago. The codes and regulations that the Telecommunications Forum co-ordinate help ensure the industry works as it's supposed to.

Our networks reach out into parts of the country that struggled to make toll calls only a few years ago, and our competitive landscape means prices have been kept low even as customers do more and expect more from the service they receive.

Where to from here? There are still parts of the country where service can be improved, and we'll be talking with the Government about how best to reach those. If we've learned anything during lockdown it's that education and health can and must be able to operate remotely and that access to Government services via online channels is vital.

Today's telco user doesn't just make phone calls and send text messages. Today we use our devices constantly for everything from paying bills to playing games, video calling friends and colleagues, learning new languages to checking in safely at venues. This is the new normal and we want to make sure everyone can take part. Thankfully, the bad old days are well behind us.

• Paul Brislen is chief executive of the Telecommunications Forum

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