Friday, October 13, 2006

Thanks to LLU

Congratulations on the increased competition brought about by LLU, now Whangarei residents are to get 10Mbit/s symmetrical service from $20/month. (Hattip: ComputerWorld)

Of course this breakthrough is actually nothing to do with LLU - how does LLU have anything to do with the provision of a new Wireless ISP? And that is the point.
LLU was not only a confiscation of private property rights, but it was an entirely unnecessary one. Telecom's main competitor, Vodafone, doesn't even have a fixed line business. So yeah - unbundling the copper loop is really necessary for competition.
There is already fiber based competition in those areas that actually warrant competition, even the likes of developments in Manakau are being trialled with fiber to the home deployments. Why is it that it is up to Telecom to perform all this infrastructure? Because the other Telco's can see that they can just sit back and be able to wait and use it - they have seen that there actually isn't the amount of price gouging going on that is claimed, and they might as well let someone else take the capital risk of investment when they will be able to use it just as if they had made the investment.
And then if Telecom makes the wrong call in the eyes of history, then the "new" players will blow them out of the water by investing in alternative routes.

Like Wi-Max.

No comments: