KEY POINTS:
Sluggish, unreliable broadband will be a thing of the past for many internet users after a sweeping network upgrade.
A radical expansion of energy supplier Vector's fibre optic network, and a deal with Vodafone, will mean more reliable and faster broadband service for customers.
Vodafone will be the
first Vector customer to take advantage of the 300km fibre optic extension, which expands the existing network to 500km of cable stretching from the North Shore to Papakura to Henderson.
Ernie Newman, chief executive of TUANZ (Telecommunications Users Association of New Zealand), says the Auckland consumer will be the end winner following the upgrade.
"We're very pleased with that development," he told nzherald.co.nz this afternoon.
"It illustrates the development of a business model that can only enhance broadband and encourage investment in internet infrastructure."
"It's that sort of creative thinking that will get New Zealand back on track with broadband and fibre optic networks."
"Our focus is what is good for the user, of course, and anything that's going to stimulate healthy competition in this area is very good news."
Vector CEO Simon Mackenzie says the deal with Vodafone, which owns ISP ihug, will deliver better broadband and mobile services.
"The extension to our fibre network in Auckland means we will further the development of true broadband, expand our customer reach and enable greater competition in the unbundled local loop environment," he said.
Mackenzie believes that partnerships between infrastructure and service providers, like Vector's agreement with Vodafone, are "the most effective way for New Zealand to advance its telecommunications offerings".
The fibre optic network will connect to 41 Telecom exchanges, meaning other ISPs can access the unbundled copper local loop to increase speed and reliability of internet service.
Technology commentator Peter Griffin agrees that the faster network will mean telcos and ISPs will have the capability of delivering more data-intensive services.
"Three-hundred kilometres of fibre doesn't sound like a lot but it takes in a good number of the Telecom exchanges Vodafone is eager to get into to deliver services using local loop unbundling," he said.
"A big issue for Vodafone and other internet providers is getting adequate data backhaul from the exchanges out to their own networks. More fibre in the ground could greatly alleviate those types of problems."
"It may also help out Vodafone in getting more backhaul capacity to its cell sites, meaning it can deliver better mobile broadband performance."
It will also drastically reduce the commercial impact of Telecom's plans to serve its own broadband customers from fibre-connected roadside cabinets rather than through the unbundled local loop, which would have drastically disadvantaged smaller ISPs in particular.
"All up it makes the unbundling and broadband wholesaling equations slightly better, which will come as some consolation in the wake of Telecom's cabinetisation plans, which shocked the industry and threaten to limit the effectiveness of unbundling."
Telecom spokesman Mark Watts says that its cabinetisation project is under way.
"Telecom is right across New Zealand, and has a project to bring better broadband to the whole country," he said.
It will involve some 2500km of fibre optic cable and 3500 roadside cabinets - but will take four years to complete.
"It has kicked off already and will take four years to see right through, but it will effect every town and city in New Zealand."
In reality, this means towns with 500 or more phone lines, and Watts admits that only Point Chevalier - a broadband blackspot - is ready to roll with high speed fibre. He expects the service to go live midway through the year.
Vodafone boss Russell Stanners says the upgraded Vector network will allow it to roll out more advanced telecommunications services.
"The high capacity fibre removes barriers and is a pivotal enabler in providing the next generation of services, both fixed and mobile, to Auckland Vodafone customers," he said.
