Kim Kersey: New Zealand's Fibre Future

During a recent consulting trip to New Zealand, I became involved in the debate over the roll-out of the Ultra Fast Broadband plan for your country. The UFB plan for New Zealand is ambitious, but achievable, and can bring immediate benefits to its citizens, if implemented effectively. New Zealanders should take pride that the per-capita investment of their UFB plan dwarfs the meager federal assistance given to broadband development in the U.S.

Having built and operated one of the first and largest public utility Fibre-To-The-Home (FTTH) networks in Jackson, Tennessee in the U.S., I have a unique perspective on deploying a competitive broadband network in a private incumbent provider arena. The impetus for our public utility to enter the telecommunications market was the limited capabilities of the incumbent providers’ voice, video, and data services, coupled with the need to better position our community for socio-economic development in a global environment. Local investment in next generation services was lagging because competition was not driving the market. The federal government had forced open the telcos’ networks years before to competitive providers, but that was not effective because the incumbent telcos controlled the pricing and process of competitive access. It was “the fox guarding the henhouse”. In addition, the local cable television system operated as the only game in town.

The Jackson utility built an open fibre network, somewhat similar to how the UFB plan is structured, with independent service providers offering Ultra High Speed Internet and telephone services over our network. Our fibre network also serves to monitor and control our electric system, and provides the connectivity for developing Smart Grid applications. Electric crews maintain both networks simultaneously, so maintenance or restoration following storms is much faster for the broadband services.

We used our infrastructure experience to construct a state-of-the-art FTTH network alongside of our electric lines, economically placing our fibre on the poles where the electric service was overhead, or in underground ducts where available. Aerial placement of fibre in the power space on utility poles offers significant advantages to underground construction. It can be completed more quickly and at about 20% of the cost of underground construction, stretching the funding dollars much further. There is virtually no property disruption with aerial placement, and the fibre has the same size and appearance as the electric lines so that it blends in with existing infrastructure. I observed the overhead fibre construction by a NZ lines company and was quite impressed with the quality and appearance of the construction.

The high level of confidence we established with our utility customers enabled us to achieve a high level of market penetration, and resulted in better services for less cost to our customers. For example, our customers enjoy Internet speeds at 25 Mbps up and down at rates that are below what the incumbents charged for DSL. Plus, our network can easily turn up the speeds to 100 Mbps to meet future customer needs. Across the U.S., other public utilities offering competitive broadband services like Jackson are experiencing similar success. How well the regional fibre networks perform will be influenced by the New Zealand Government and what mechanisms it uses to drive customer growth and achieve return on its investment.

The New Zealand UBF plan is the right approach for developing competitive, advanced broadband services. The capital cost of a fibre network is typically too great for a single competitor to enter the market against an entrenched incumbent. However, by creating an open fibre broadband network foundation from new and existing infrastructure, the UFB plan enables incumbents and new service providers to access the benefits of ultra-fast fibre optics for the benefits of their customers. But who should build and manage these foundation open networks? As Ultra High Speed Broadband is becoming the next utility, the electric utilities are the best-suited for this role. Just as electric lines companies distribute electricity for competitive electric retailers, they can also independently operate fibre broadband networks to distribute competitive service providers’ traffic to their customers. The lines companies can also leverage these fibre networks to more cost-effectively manage their electric grids. As local or regional entities, lines companies are attuned to their communities, especially in rural areas.

New Zealand should not hand its broadband future over to the telecommunications status quo. There is a better path with the electric utilities who can leverage their infrastructure experience and mission to provide essential services to develop a world-class fibre broadband network for all of New Zealand.

About the author:

Kim Kersey is a U.S.-based fibre broadband consultant providing guidance to municipalities and public utilities for the deployment of next-generation fibre optic networks. Kim has built and operated one of the first and largest public utility fibre networks in the U.S. and has assisted several other public utilities with similar projects both domestically and abroad. He can be contacted at Kersey Consulting Services LLC. Jackson, TN USA.

About The Vector Fibre Debate

The Government plans to give New Zealand a complete fibre to the door ultra-fast broadband network. Vector thinks that’s a great idea and is hoping to help them do it and Scoop.co.nz also thinks its something well worth discussing. To have your say in The Vector Fibre Debate see… http://www.fibretothedoor.co.nz/

ENDS

© Scoop Media