Internet pioneer takes break

By ADAM GIFFORD

One of the pioneers of the New Zealand internet industry, Asia Online New Zealand manager, Hugh McKellar, has written himself out of a job.

He says a strategic review identified efficiencies by treating Australia and New Zealand as different markets, although as a single resource pool.

"It means some people taking up roles for both countries and some moving to Australia to take up regional roles."

The New Zealand branch will become a centre of excellence for the Asia-Pacific region in managed security services and technical support and services.

Grant McGough is appointed regional technical support manager and Tony Wicks takes on a network operations role for the region. Both remain in Auckland. The head of professional services, Kevin Francis, takes over as general manager New Zealand.

"I had discussions with Asia Online about international roles, but I'm committed to New Zealand," Mr McKellar says. "And, after four-and-a-half years, it's time for a change."

The company started here as the Internet Company of New Zealand, or Iconz, and was one of the earliest internet service providers (ISP).

It was bought in October, 1999, by Hong Kong-based Asia Online - whose major shareholder is Japanese technology investor, Softbank - to become part of a regional network of ISPs.

It was Mr McKellar who, with former owner Ron Woodrow, turned Iconz into a ISP-centred business.

Mr McKellar had returned from a decade in Britain working for major financial services companies, including a spell as director of Lehman Brothers, a company specialising in securitising mortgage-backed assets and other debt.

"We had branches around England and in Europe and we were starting to use remote networking capabilities just as the internet started to be viable for that."

He persuaded Mr Woodrow that online business services were a major growth area, and positioned Iconz in that market.

"That required sorting out a lot of internal systems, acquiring people with a business service focus, rationalising the product line, setting up a research and development section to trial new business solutions and providing a higher level of customer service," Mr McKellar says.

"We couldn't compete on price with Xtra, which was just starting up, so we competed on service."

As a small, innovative company, Iconz was able to focus entirely on customer needs. New technologies were developed or adopted to resolve customers' specific business problems, rather than being a generic offering aimed at assumptions of market demand.

He says the acquisition by Asia Online gave Iconz a strong position in the New Zealand market.

"Business is increasingly looking for international solutions. The internet is an international technology. To be bound by national borders is counter-intuitive."

Mr McKellar has not identified his next job yet. It will, however, be in the internet or e-commerce field in this country, although not in direct competition with Asia Online.

Before he decides, he is taking time out to walk tracks in the Marlborough Sounds: "I was able to do all the research for that on the net - from transport options to flight timetables to renting private baches. You couldn't have done that four years ago."