Kim Dot Com or Kim Dot Come on?

If nothing else, Kim Dotcom’s tweet has reignited debated
about whether we need a competitive international cable market for New Zealand.

The short answer is yes, because we don’t have a competitive
international cable market. We have Southern Cross Cables and its network, but
we don’t have competition, and this concerns me. It also concerns most of the
telcos and ISPs I talk to and it should concern anyone who is supportive of New
Zealand building an internationally competitive digital economy.

In the old days we talked about the internet as the “freezer
ship” of the future. The internet could deliver the same increase in
productivity to the New Zealand economy that the introduction of freezer ships
did way back when.

It seems so quaint now, to think of the internet in terms of
commerce, when these days we use it to organise revolutions both social and
political, but there it is, the internet’s dirty little secret: it can be used
to make money.

I’ve said it before, repeatedly, and I’ll keep on saying it.
New Zealand stands to gain the most from the move to a digital economy. We can
export teaching instead of teachers, we can export intellectual property
instead of goods, we can export talent without losing those people. We can
export our business savvy, our capability, our cost effectiveness and our
willingness to get the job done. These things are all in short supply around
the world – we can fill that need and we can do it from here, without having to
go overseas unless we want to.

For that to work we need something that’s also in short
supply. Leadership. We don’t need more management, we need leaders with a
vision. We need someone to say “this is the plan, this is what we’re going to
do because it needs doing”, not “my staff didn’t inform me” or “of course I’m
worth my million dollar salary”.

If nothing else, Kim Dotcom is good at cutting through the
red tape and getting on with it. Love him or hate him, you have to give him
that. Want to share files? Build a file-sharing site. Want to play Modern Warfare
2? Lay fibre to the mansion and hook up your Xbox. Want to run an international
business from New Zealand but the infrastructure is lacking? Build the
infrastructure yourself and get on with it.

We need four things to get this digital economy off the
ground: international connectivity, cheap green power, an environment that will
attract talent and more students coming through the system keen to work in the digital
economy. Let’s focus on that for a while and see how we get on.

And if it takes an odd German with an odd name and a penchant
for the wrong German cars (get a Porsche) then so be it. We’re in no position
to be picky – let’s just get it build and then discuss the niceties.

I’ve heard from a number of TUANZ members who are keen to see something get off the ground. They see the need for competition on the international leg and were disappointed to see Pacific Fibre fall by the wayside.

Suggestions have ranged from a TUANZ tax on every telco bill to fund a build through to setting up a trust similar to the model used to build electricity lines around New Zealand. I’d be keen to see whether such a thing would fly – it would need the buy-in of some major telcos so we could add the  pennies per call or dollars per month to the bill, but that’s not insurmountable. 

What do you think? Would a publicly-funded project get off the ground?

2 replies
  1. Rod Drury
    Rod Drury says:

    My conclusion was Pacific Fibre is best done as a PPP. This absolutely requires leadership to get the market architecture and vehicle right but does not necessarily require significant public funding. Money is there seeking infrastructure type investments.

    But first the Govt needs to acknowledge UFB is at risk due to lack of end user demand, logically due to a lack of supply of international bandwidth and content. Right now they can’t though the signs are clearly there with the very low take up of UFB.

    Frustrating to hear the PM this morning still talking about there being plenty of capacity on SX. That the capacity is not unlocked is the problem.

    https://plus.google.com/115714788299598528960/posts/Jj12ramioG5

    • Paul Brislen
      Paul Brislen says:

      I’ll make it easy for them all – I’ll vote for a govt that sees the benefit to New Zealand of being competitive in terms of capacity and which helps build a digital economic future for New Zealand. The Sir Paul Callaghan approach – build the place where talent wants to live.

      Thanks for the comment, Rod. Hope your meeting goes well – I’m told the cupcakes are excellent. 😉

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