GigaNaki

/1 Comment/in /by

My trip to Taranaki last week gave me a chance to put faces to the gigabit speed test results I’ve been posting. I took the time to visit Primowireless and see what these guys are up to, what I found is a seven year old business that is thriving by filling the niches that others find hard to fill.

At the moment those niches are rural wireless, business fibre, residential broadband and hybrid solutions that are a digital version of the ‘Taranaki Gate’. Kind of sounds like the ideal future oriented RSP for regional NZ, actually I think they are.

Primo is located a couple of hundred metres up a side street in Inglewood, from the outside there’s two double cab utes and an office located in an ordinary house. Inside is busy chaos, there’s account being done, an antenna being assembled for an install and all sorts of gear lying around.

Talking to founder Matthew Harrison, I hear a typical story, he and is mates were LAN gamers who started building ad-hoc LAN’s for gaming parties at each other’s houses. This is a common starting point for entrepreneurs in this space. He started out improving rural connectivity for people who wanted what the rest of us take for granted.

They now have over 50 sites all round Taranaki and provide an impressive service which has seen customers leave to try RBI services and then come back because the ‘official’ solution doesn’t work as well as what they already got from Primo.

They are also keen to mix and match technologies and are free of the ‘rulebook’ constraints found in our larger operators. I was impressed with plans to bring historic Parihaka into the digital age.

But what I really wanted to learn was what are they doing with UFF’s gigabit residential service and what might a final service look like?

I was wondering how they were doing this when there is no UFB in Inglewood itself. The answer is simple, one of there tech’s Hanan already had 100mb/s UFB to his home, so Primo upgraded this to UFF’s 1000/20 ‘GigaNet’ service.

Then the testing began by testing the ‘SpeedTest’ results from hitting servers all over NZ, the results have showed a few interesting things, obviously local is fastest, the next is that interestingly ‘Spark’ servers produced the best results at other NZ locations, this I think is indicative of the fact that Spark (not Chorus) have provisioned the network that you would expect is required to service 50% of the broadband subscribers in NZ.

Primo themselves have access to multiple backhaul providers and are confident that Taranaki customers really do have access to the best broadband in NZ.

I was interested in Matthews thoughts on provisioning and pricing a residential gigabit service, something I hear from the big guys is really, really difficult. So it was refreshing to hear Matthews thoughts and how his innate knowledge of the industry gives him the ability to create a product model in his head in about 20 minutes.

I need to stress that this is a ball park, blue skies conversation and in no way reflects what Primo may finally decide to launch.

First of all Matthew understands the cost of his inputs, installation, UFB service, handover and backhaul plus provisioning of data.and having good enough user level equipment to actually be able to use a gigabit.connection.

First of all Matt recognises that his handovers will need to be upgraded to 10gb/s, remember this is a shared handover at the point of presence. He will then monitor the need to provision more backhaul as required which I think is sensible. 

What I found really interesting was Hanan’s observation that other than the SpeedTest results you can’t really tell the difference between 100mb/s and 1gb/s, the other issue is that most people then use WiFi that probably tops out at 50mb/s at best. So the case for 1gb/s is mainly ‘overhead’ and that is what you’d get with a house full of device equipped teenagers or you’ve got Hanan and his mates having a LAN party.

I also found Matt’s view on data interesting he’d like to separate plans into the connection and the data, rather than offering ‘unlimited’ plans as at 1gb/s it is possible to go through a staggering amount of data. So options could include daily data plans or buying into quantities in the ‘terabytes’ rather than ‘gigabytes’.

I found it fascinating that each speed test consumes about a gigabyte of data, this is due to how Ookla have designed their speed test, I’ve heard similar tales with people showing off their 4G cell phones and blowing their monthly data cap while trying to get bragging rights at the pub.

The other observation is about customer expectations as to what a ‘gigabit’ really means in that the fastest test to date is actually 975mb/s and you will not ever actually achieve the magical gigabit. So is it better to call this a 500+ or 750+ service, the same observation is true for 30, 50, 100 & 200mb/s service.

I’ll blog separately on Matt’s views on rural broadband.

 

Roadtrips…

/in /by

Apologies for the light blogging over the last few days, I’ve been on the road with 2 funerals and an Economic Development roadtrip to Palmerston North.

Its made me reflect on the value of the roadtrip, far from being a burden I think they are really valuable opportunities to get re-grounded in whats really going on around the place.

My first observation is that the lower North Island regional economy is looking pretty good, the farms are green and lush and the towns are all busy. You can see UFB activity going on all over the place and state highway cellular coverage is now pretty reliable.

Its also important to see the real productive NZ economy in action, the Fonterra trucks driving in convoy, the roading developments and the generally good state of the vehicle fleet.

You can now get good coffee pretty much everywhere and there’s less of the feeling of small town despair that you got a decade or so ago.

I’m constantly amazed at the booming ‘cone fairy’ industry where you see 3 or 4 trucks and their crews diligently protecting one council working in his ute picking up rubbish or overseeing one roadside mower.

I saw the spirit of kiwi innovation at Primowireless in Inglewood, and yesterday I sat in on an inspiring discussion at what will hopefully be the genesis of a ‘western seaboard’ economic development agenda stretching from Whanganui to Porirua.

I’ve heard from several sourcesabout the Keynesian economic benefit of starting the Kapiti Expressway and seen the plans that ‘Kapiti Landing’ have to take advantage of that as well as our long awaited and much needed Transmission Gully motorway.

We want to make sure that all these things are ‘digital by default’ and that we really are setting up NZ’s brighter future.

I think I’m going to try and get out more often, you should try it sometime.

Nice…

/in /by

Sometimes its the little things that show you how much things have changed.

Yesterday I went to a funeral in New Plymouth, and it was being streamed live over the internet to family that couldn’t be there in person.

In fact there was a subtle digital capability to the entire event, the nicely designed and digitally printed order of service, the big LED TV (at least 60′) showing the now obligatory slideshow of digitised memories and the streaming all showed how engrained digital tech now is in our lives.

Go back 3,000 years and the only people who got that kind of send off were the pharaohs.

Our kids will leave behind a cradle to grave archive of digital memories and their descendants will know more about them than all previous generations combined.

Nice.

 

2 Degrees (of separation)

/in /by

What do Microsoft, Steve Jobs and 2Degrees all have in common?

The answer is John Stanton, a founding partner of 2Degrees major shareholder Trilogy International Partners, and former confidant of Steve Jobs was recently appointed to the Microsoft board. 

Thats quite a lot to fit together, so I’ll unpack a few pieces because this is a story that should interest us all here in NZ as John is obviously an insiders ‘insider’ when it comes to all things mobile.

First of all his own CV shows a career that has grown and thrived with the mobile industry.

“Stanton led four of the top wireless operators in the United States over the last 32 years, and operated wireless networks in Europe, Africa, Central and South America, and New Zealand.

During the 1980s, he served as chief operating officer and vice chairman of McCaw Cellular. From 1992 to 2005, he served as chairman and chief executive officer of Western Wireless Corp. Between 1995 and 2003, he served as chairman and chief executive officer of VoiceStream Wireless, which was acquired by Deutsche Telekom and subsequently renamed T-Mobile USA. He also served as director and later chairman of Clearwire Corp. from 2008 to 2013.”

That is probably why Steve Job’s sought out his advice when Apple was developing the iPhone

“When Steve Jobs first dreamed up the iPhone with his team at Apple, he didn’t want it to run on AT&T’s network. He wanted to create his own network.

So says Silicon Valley venture capitalist John Stanton, who spent a good deal of time with the late Apple CEO during the phone’s development period. Jobs wanted to replace carriers completely, Stanton says, instead using the unlicensed spectrum that Wi-Fi operates on for his phone.

“He and I spent a lot of time talking about whether synthetically you could create a carrier using Wi-Fi spectrum,” Stanton said on Monday at the Law Seminar International Event in Seattle. “That was part of his vision.”

Both Wi-Fi and cellular frequencies belong on the ultra high frequency level of the radio frequency spectrum. Wi-Fi takes up five channels of the 2.4 GHz band. Other frequency bands are allotted to various purposes and cellular providers by the FCC.

Jobs gave up his plans to create his own network in 2007, ultimately settling on a deal with AT&T.”

Wired then goes on to wonder

“It’s not outrageous to think Jobs and Stanton spoke candidly about network matters, given Stanton’s long history with wireless carriers. He was the first employee at McCaw Cellular, the national wireless provider that later became AT&T Wireless. He started another firm called Western Wireless, which birthed an operator called Voicestream that was bought out by Deutsche Telekom and became T-Mobile.”

So John is definitely a ‘go to’ guy, Jobs was legendary for seeking out the best advice from the best people and now it looks like Microsoft are after some of the same as they face the challenges of competing in the ‘post PC‘ era. 

Microsoft have been trying to get mobile right for a long time, way before Apple entered the fray, in fact second kind of ‘smart phone’ I used was a ‘Windows Mobile’ these were HTC devices that ran on Telecom’s pre XT evdo CDMA network.

They were awful and made me long for my previous Palm OS based Kyocera ‘smart phones’, but I appreciated have email on the go and other basic internet based services.

Microsoft have had numerous resets in their mobile strategy, with the latest being the purchase of Nokia’s mobile business and the desire to create one overarching OS.

It is starting to look like Apple and Microsoft have swapped places especially when IBM has now firmly lined up to support iOS in the enterprise space.

I’d love to be a fly on the wall at the Microsoft board meetings as they like everyone else try and unlock the future.

But it’d also be fascinating to hear what goes on at a 2Degrees board meeting as they try and figure out their ‘breakout’ strategy to move from the expensive and competitive ‘pre-paid’ plains to the green fields and higher ARPU of post paid business accounts, full service residential offerings and getting a slice of the media and mobile payments pies.

A birth notice…

/4 Comments/in /by

Wow!

Residential gigabit is getting born today.

In Taranaki, these tweets from Primo Wireless tell the story with improving speedtest results.

Not bad for a first attempt!  

Not bad for a first attempt!  

Now thats more like it

Now thats more like it

So first of all congratulations to Primo wireless for 2 things, one is giving it a bit of the old ‘Naki’ hard core attitude and seeing what they can do with a gig and secondly for being open about their testing and the results.

I’ve heard they’ve identified some hardware issues, thats to be expected but now they can get on with creating real gigabit products for their customers.

As you can see a premium 1gb/s product will be somewhere in the $200 – $400 range, which isn’t actually surprising and highlights the biggest unanswered question surrounding Chorus’s gigatown competition, even with the wholesale circuit being $27.50 cheaper than UFF the rest of the stack will have similar costs.

This makes me take articles like this with a grain of salt.

Anyway congratulations to Primo and UFF on turning an audacious idea into reality, bring on the giganation…

Update

They’ve keep playing over the weekend and this is the result:

Thats hitting a local server, so UFF's gigabit service is genuine

Thats hitting a local server, so UFF’s gigabit service is genuine

And this is what they get going to other places A+ indeed

And this is what they get going to other places A+ indeed

 

I’ve got to be in New Plymouth tomorrow so I’ll make a detour to Inglewood to meet these guys

Hanging up on Telecom

/in /by

Those aren’t my words, they’re Simon Moutter’s as they officially relaunched Telecom’s Auckland HQ as ‘Spark City’.

Like most Kiwi’s over 35 I’ve watched the huge changes that have occurred since the 4th (Lange) Labour Government started the ball rolling by ‘corporatising’ the old Post Office.

I was a 20 something commerce student in Dunedin and it was like living through a revolution, all these moribund institutions were turned inside out overnight. In 1988 I found myself working for Telecom’s sibling NZ Post.

At that point in time, the Telecom ‘C’ suite lived in Post HQ and the tension in the air was palpable, I soon lamented to my boss that we should’ve got Telecom to leave us a copy of the billing system because after they left, Post no longer knew its customers by name.

Telecom then grew up rapidly, started dating rich boys for their money and my mates that worked there started using long words like ‘nomenclature’ but pronounced it ‘Gnomen Klature’ like their new overlords.

As I taught the NZDMA’s certificate course in Wellington over the late 80’s & early 90’s I had many bright young ‘bellheads’ pass through my classes. In truth I was a bit jealous of the glamorous world they inhabited.

When I was making a direct response TVC for the Reserve Bank in 1991 selling Rugby World Cup commemorative coins I used Telecom Mobile’s call centre as my in-bound telemarketers. When we had a scheduling issue with TVNZ I saw the power of Telecom muscles being flexed first hand.

We went on to do advertising and marketing work around the fringes of Telecom, and we had a lot of fun. I have great memories of working with Ross Baker and his mobile team  during the marketing wars with BellSouth, it was mobile that lead to our (& possibly NZs) first use of a URL in a print ad in I think 1993.

My second on-line client was ‘Netway’ and I did my first video conference with them in 1992, I was introduced to the mobile internet then as well using my ‘Mobile Business Solutions’ office in a briefcase with an analogue Motorola cell phone and a device called a cellular modem.

Over the years we drifted apart as friends and acquaintances do, I got involved in the ‘other’ side with people like CityLink, the pacific.net and ultimately TUANZ. At the Project PROBE launch in Nelson Ernie Newman called Telecom ‘nothing more than a privatised IRD’ and he lamented the fact that NZ was unique in having an essentially non productive utility as its most valuable company!

So I was in the trenches and smelly tee-shirts fighting for change over the last decade and look at where we’ve got to. We now have a rational and competitive market structure that is attracting investment and delivering dramatically better services at lower costs to most New Zealanders, we still have some issues to sort out but on balance things are vastly improved.

I have been impressed with how post-separation Telecom has taken logical steps as an RSP, they have the challenge of being both defensive and an innovator. They are focussed on success and they face some big competition from overseas, so I personally wish them well.

As Simon said tonight its time to hang up on Telecom and log in to Spark.

 

 

Reality Distortion Fields

/in /by

I’m a big time Apple fan, I’ve spent 3 decades using the products of my favourite fruit company and I’ve always been in awe of Steve Jobs. One of my big regrets in life is that I never got to see his famous ‘Reality Distortion Field’ in action, this was his legendary ability to reframe and present a concept such that Apple could own a market.

Jobs did this many times and over time it stretched from the launch of the first Mac, to his return to Apple, the iMac, the iPod, iTunes, the iPhone and iPad and the rest is history.

So I was very curious to see Chorus attempt to build their own ‘Reality Distortion Field’ with a press release this morning saying they wanted the current ‘FPP’ copper pricing review process being undertaken by the Commerce Commission to be based on ‘New Zealand Reality”.

What they actually mean is that they want it conducted according to reality as defined by Chorus. This would then mean that the Comcom would simply base their findings based on Chorus’s books and current cost structures not the process the Comcom are required to conduct which is based on modeling a competitive network benchmarked against similar networks offshore.

Chorus are trying the ‘illusionist’s’ trick of distraction “look over there…” but they have broken the first rule of reality distortion, never, never let your audience know what you are really doing.

Can you imagine Steve Jobs ever saying ‘we want your mobile phone purchases to be based on an Apple reality’ ?

No, instead he painted a picture that was so compelling, you couldn’t see anything other than his reality and did it so well his keynotes became media events and stockmarkets moved as a result.

 

Forbidden Knowledge…

/2 Comments/in /by

There’s been a wee drama unfolding off screen over the last few days as our TV operators have lined up behind SKY TV to refuse to run a TVC from Slingshot that made a reference to their ‘global mode’ service that lets customers get around IP address based geoblocking so that they can access off shore video content from providers such as Netflix, Hulu, iTunes and BBC iPlayer.

The supposed reason for the ban is the legality of global mode. Apparently a complaint has now been laid with the ASA (Advertising Standards Authority) so we’ll see how this plays out, but Slingshot have now ‘censored’ the offending material so I think it may end up as an ironic net positive for them.

What is at stake here is the future direction of NZ’s close to $1bn/yr TV advertising market, what the channels sell advertisers is audiences and there are 3 things that generate big viewing audiences, live sporting events (most of which SKY own) News and compelling TV shows (like Dr Who, Top Gear, Game of Thrones or Breaking Bad). The problem is that the internet has broken all three models.

TV doesn’t break news any more, it often simply aggregates and repeats news from on-line sources, the same is happening with sport and will increase as sporting organisations will increasingly seek to monetise their own audiences and the TV content rapidly looses its audience generating appeal when global fan bases all tune in to the first run and its reviews.

I think we all know people who have gone down the global route, I have friends who have moved back to NZ from the states, they have a fast (non-UFB) 100mb/s connection, the technical savvy to ‘global mode’ and they enjoy Netflix, Hulu and US iTunes. I also know of a former cabinet minister who saw an Apple TV overseas, bought one and then was very disappointed at the NZ Apple TV offering.

I think SKY, TVNZ & Mediaworks need to be careful implying that people like these are thieves and pirates, they are not – they are customers. More than that they are prepared to pay for the content they want, just not necessarily to the so-called NZ rights holders. But this is also bigger than that, their business model is under threat from marketers shifting their budgets on-line, have you noticed the local ads you get at the start of YouTube clips?.

As advertisers follow their audiences on-line the defensive measures will get more desperate, and the real battle lines will get drawn. I think Slingshot will emerge from this skirmish with greater awareness of global mode and the concept of ‘geoblocking‘ and the whole ‘stack’ of content rights will slowly get dismantled and get dispatched to the rubbish bin of outdated ideas.

 

 

And so is Telecom…

/in /by

As we count down the last few days of Telecom in its current form, they have just come out with a request that TUANZ can easily get 100% behind – consistent gigabit downloads and pricing from all NZ’s local fibre companies.

It’s time for a ‘Giganation’ says Telecom as UFB coverage hits 100%

Telecom, soon to be Spark New Zealand, says the time has come for Gigabit per second data download speeds to be available across all of New Zealand’s Ultra Fast Broadband (UFB) fibre network.

It seems that the idea of a ‘Giganation’ is going to get a lot closer as the largest RSP calls for all the LFC’s to offer consistently spec’d and priced services.

This also shows that Telecom now sees that gigabit residential fibre is the aspirational product for Kiwi homes. 

I was feeling all ‘Giga’d’ out a couple of months ago, Gigatown was grinding on and looked like the only game in town, then we had Telecom talking about ‘GigaWiFi’ then they launched ‘Giganaires’ but the game changer came when the Central North island LFC UFF (Ultra Fast Fibre) declared themselves to be the ‘GigaNet’.

And now its all starting to come together, the largest RSP is basically calling for common sense to prevail in every part of NZ, Chorus need to go beyond Gigatown as the prize is really diminished in value, NorthPower and Enable need to get a Gigabit product out there and UFF are to be congratulated.

This means that real residential gigabit downloads speeds are coming, and its no coincidence that this lines up with Telecom / Spark getting ready to launch ‘LightBox’ their $15/month internet TV service.

Hopefully this marks the beginning of the UFB being marketed as more than DSL on steroids, Telecom will need to update their TVC that currently states that fibre is up to 7x faster and in the future that’ll be up to 7 million x faster.

I can’t wait…

 

 

 

Kim Dot Com is right…

/in /by

About one thing anyway, and that is that we need fibre to 98% of New Zealand. 

5.2. Universal access

Fibre for all: The Internet Party believes that fibre broadband is essential infrastructure if New Zealand is to become a global leader in the digital age. The goal is fibre to the premises of the 97.8 percent of New Zealanders covered by the UFB and RBI programmes. While UFB is expected to provide fibre to 75 percent of New Zealanders by 2020, the Internet Party will deliver fibre to the remaining 22.8 percent in the RBI coverage area.

Rather than a single, “one size fits all” national programme, this will be achieved by co-ordinating a number of individual initiatives to:

  • Encourage and support Local Fibre Companies to expand their coverage areas.

  • Similarly, encourage and support companies with fibre laid before the UFB programme.

  • Catalyse, support, and remove obstacles for communities to self-organise, similar to BARN or other local initiatives.

  • Build spurs from fibre laid by Chorus under RBI.

  • Develop partnerships with iwi, marae, and local businesses.

  • Invite innovative proposals from local communities and continuously look globally for successful examples.

I won’t go into the details but the key thing here is that fibre is the future. There’s is an irony that technologies are always at their best at the end of their useful lives, examples of this are everywhere, the fastest steam trains were the last steam trains, the fastest piston engined fighters were also the last ones.

The situation often occurs when their is still a degree of equivalence between the old technology and the new one that is replacing it, early diesel trains weren’t that much better and later mark Spitfires & Mustangs were up there with the early jets but everyone could see the huge potential of the new technologies.

Its the same in the copper versus fibre debate, yes better speeds can still be extracted from clean copper over short distances, but when you read about speeds like this thats an unbelievable 43tb/s – thats terabits per second. And thats why fibre is the future, nothing else can deliver that kind of potential.

I think it also helps to understand 2 other current trends, one is that 1 gb/s is well on its way to being our baseline speed and the second is why we need a planned exit from the copper network.