Report: the best of fiber is yet to come

A Deloitte report says New Zealand’s fiber optic infrastructure has already delivered huge economic benefits, but there is much more to come.

In Unlocking the power of fiber digital infrastructure in New Zealandthe professional services company says fiber contributed $31 billion between 2011 and 2023. It grew the economy by $8.8 billion in 2023. That’s nothing compared to what’s ‘comes. Deloitte says it could add another $163 billion over the next ten years.

New Zealand’s productivity has been sluggish for years. Liza Van der Merwe, senior partner at Deloitte Access Economics, says fiber can help increase productivity as it enables innovation and paves the way for business transformation.

Addressing digital equity

To achieve this, among other things, she says we need to address digital equity by boosting access and adoption of fiber optics.

Also on his list: “Driving innovation through AI, accelerating the adoption of digital tools and transformation in small businesses, seizing export growth opportunities, leveraging data and digital technologies to improve government services for businesses and frequently review regulatory parameters.”

Mark Aue, CEO of Chorus, says: “It’s not just about economic value; Access to high-capacity connectivity has radically transformed the way we live, work and play over the past decade.

“How New Zealand leverages fiber will determine our ability to realize the full productivity benefits and ensure we remain competitive on the global stage. »

Analysis: Deloitte calls for more fiber

New Zealand’s UFB network covers 87 percent of the country. That leaves 13 percent of the population without fiber.

So far, official wisdom says that the cost of connecting the rest is too high. Yet the Deloitte report suggests the cost of not connecting them will be much higher.

European countries are aiming for 100% fiber coverage. It may be too ambitious for us, but choosing not to reach 95% or more is leaving money and prosperity on the table.

Fiber will bring in nearly $200 billion on a $5 billion investment. It would cost between $2 billion and $2.5 billion to extend the network to 95 percent of the country. The gain would amount to tens of billions. Achieving 99% could cost twice as much, but would still return several times the initial investment.

If only roads could pay dividends like that.

As the Rural Connectivity Communiqué article points out elsewhere in this week’s newsletter, a lack of affordable internet options in these regions also creates a digital divide. Are we all okay with this?

A New Zealand closer to cell towers in the sky

A New Zealander says testing of its satellite-to-mobile service is “going well” in Christchurch. The company’s network engineers have successfully sent and received SMS networks using Starlink Direct to Cell.

Last year, One NZ’s advertising promised its customers 100% coverage in 2024. It could still achieve that goal all the way if we understand that coverage means text messaging and accept that dog days of summer vacation be considered this year.

One NZ says it will only launch the service when a message can be sent or received within minutes. This requires putting better equipped satellites into orbit. It will be a while before seamless messaging and voice calls arrive.

Resilient Backup

Sharina Nisha, One NZ general manager of network services, put the project into perspective, saying: “Satellite messaging will provide us with a resilient backup for our mobile ground network. This will make it safer to explore our country and help businesses across New Zealand be more productive.

She says: “We’re sending engineers across the country to put the Starlink Direct to Cell service through its paces, so we can be sure it works in all kinds of real-world conditions before we put this new technology in people’s hands . of our customers. »

Starlink to join TDL party as TDL draft decision falls

Starlink’s New Zealand revenues have exceeded the threshold at which it becomes liable for the New Zealand Telecommunications Development Tax.

Telecommunications Commissioner Tristan Gilbertson said SpaceX’s low-Earth orbit satellite broadband network would pay a share of the tax corresponding to its $74 million. qualified income.

The TDL is a fund created to finance the type of non-commercial telecommunications services that were formerly provided by the state monopoly. This includes 111 emergency calls and services for deaf people. In the past, TDL was used to finance rural broadband projects.

Each year, the TDL collects $12 million from all telecommunications companies with revenues above the $10 million threshold. Each business pays proportionately based on its share of total eligible revenue.

In practice this means Spark, One NZ, 2degrees and Chorus pay the majority of the levy. This year, the share of the big four players in the total stands at 84 percent. SpaceX’s contribution is expected to represent around 1.5% of the total.

The TDL is unpopular with the telecommunications sector, which rightly points out that other sectors are not subject to similar additional taxes.

Rural connectivity statement speaks out against postcode lottery

The uneven distribution of telecommunications services across regional New Zealand has angered attendees at this year’s Rural Connectivity Symposium.

The post-event press release indicates that the level of service is equivalent to a postcode lottery.

Jon Duffy, CEO of Consumer NZ, says: “There should be no second-class position…Customers should be able to access great service regardless of their location. » He says healthy markets, where competition offers fair prices regardless of location, would benefit rural customers.

Many speakers called for more investment in areas where connectivity is available but not affordable. There is evidence of a digital divide, particularly in rural areas where low-income households do not have access to the internet.

Craig Young, CEO of Tuanz, said: “We know there is no silver bullet, but we need an ambitious vision to ensure everyone who needs and wants to be connected can be connected.

New Zealand and UK team up to tackle satellite waste

The space agencies of New Zealand and the United Kingdom have agreed a plan to remove and service satellites close to each other or in contact.

The agreement will help the two countries conduct so-called “rendezvous and proximity” missions to clean up space debris, refuel satellites and maintain satellites. All of this is essential for keeping satellites in orbit and maintaining networks.

A press release from the Ministry of Business, Innovation and Employment says there is an urgent need for new technologies to accomplish these tasks, as they allow satellites to operate for longer.

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Lawton to lead One NZ’s enterprise mobility sales

Jelena Lawton is One New Zealand’s new Enterprise Mobility Sales Manager. It’s a role that involves working with the telecommunications company’s largest customers to understand their needs and provide them with the tools they need.

Lawton comes to this role after nearly six years working in an enterprise mobility role for Apple. She previously worked for Spark and 2degrees.

5G uplink speed hits 447 Mbps on Telstra site

Australian telecommunications giant Telstra worked with Ericsson to break existing records and achieve a download speed of 447 Mbps on a standalone 5G network.

In a media statement, Ericsson notes that uplink performance is essential for high-definition live streaming, video conferencing and data-intensive applications. While this is true, high definition video performs well at speeds well below 447 Mpbs.

In other news…

‌“Life-saving” tax cut helps New Zealand games industry return to strong growth
The NZ Herald’s Chris Keall examines the games industry’s rebound after the government moved to counter aggressive Australian attempts to woo companies with favorable tax deals:

After stagnant growth and an “existential crisis” over the previous two years, the local video game industry grew 26% to $548 million in revenue in fiscal 2024.

It was the first time the industry had passed the half-billion-dollar mark – with most of its revenue coming, as usual, from exports – according to the New Zealand Game Developers Association (NZGDA) annual survey ).

Revenue per employee jumped to $499,500 from last year’s $390,000, with the number of people employed in the industry – 1,097 – only slightly exceeding the revised 2023 total of 1,060.

‌IPv6 may already be irrelevant – but so is abandoning IPv4, says APNIC chief scientist
In The Register, Simon Sherwood reports on Geoff Huston’s thoughts on IPv6 and how content delivery networks mean the protocol is not as essential as once thought.

Foldable smartphones: a flip-flop or a flip-flop?
Peter Griffin’s story is paid, so you will need a subscription to read it. Although the phones are technically impressive but haven’t taken off, they still make up less than 2% of the total phone market.

Netflix’s third-quarter subscribers barely beat estimates as ad-tier members jumped 35%
Streaming is expected to look more like old-fashioned commercial television, as Netflix notes that its ad-supported service accounted for more than half of all new signups in countries where the option is available.