TelstraClear UFB Interview - The UFB Network NZ Already Has

Wednesday, 11 May 2011, 1:24 pm
Article: Alastair Thompson

In recent weeks TelstraClear CEO Dr Allan Freeth has been at the sharp end of a united telecommunications industry campaign against legislation to enable Ultra Fast Broadband which is currently proceeding through Parliament.

Dr Freeth has said the planned government reforms will hand Telecom a monopoly in New Zealand telecommunications in a manner which will likely stifle investment and innovation for at least the next decade and lead to a third world telecommunications system.

At Dr Freeth's invitation Scoop's Alastair Thompson and Selwyn Manning interviewed the TelstraClear CEO in depth about his company's views on the future of telecommunications in New Zealand - and the role of TelstraClear in that future.

As the debate about ultra fast broadband can be a little confusing and often clouded in jargo the extended interview format is intended to tease out the issues around how UFB is used in practice and how the plans of the Government will likely impact on these at a consumer level.

For additional background see:
- TelstraClear: Ultra Fast Broadband (UFB) Legislation and TelstraClear
- Technical background presentation on the TelstraClear HFC Cable network in Wellington and Christchurch (.pdf)
- TelstraClear Corporate Overview (.pdf)
- Video - TelstraClear Real World Traceroute - From Scoop Home To Scoop HQ

In part 1a of the extended interview with Dr Freeth:

- We receive an introduction to the $2 billion TelstraClear network in New Zealand. The two main elements to this are the HFC coaxial cable networks in Wellington and Christchurch and a fibre backbone network around the whole country.
- Dr Freeth explains how the network came into being, what its capabilities are, and what services are sold over it.
- The interview then turns to discuss the ultrafast "Warpspeed" 100mbs DOCSIS3 technology that now stands behind the TelstraClear cable network, and which is capable of delivering ultra fast broadband to homes in Wellington and Christchurch today.
- Dr Freeth begins by discussing the NZ internet connections to the outside world - Australia and the United States - and what implications capacity constraints on these networks have on pricing and availability in NZ.
- Dr Freeth concludes by explaining why the constraints on overseas connectivity result in low data caps for New Zealand customers - and how in many respects these are more of an issue to customers in NZ than speed at present.

In part 1b of the extended interview with Dr Freeth:

- The discussion about overseas connectivity continues:
- Dr Freeth declines to speculate on why the cost and capacity on the Southern Cross Cable is so constrained and explains how issues of network traffic growth are considered by network operators;
- Discussion then turns to the issue of where most content used by residential customers originates - i.e. overseas - and to the policies and practices of the multinationals whose content forms the bulk of traffic over the NZ residential network.
- Dr Freeth says that issues around the delivery of content are ones which need to be worked through by the industy and that there are technical solutions available if the will is there.
- He also addresses the issue of whether regulation might be required over the Southern Cross Cable connection to the outside world.
- The issue of IPTV content is then discussed and Dr Freeth explains the content use patterns of his teenage children which do not significantly involve IPTV in the traditional sense.

(Continuing….)

In Part 2 of the TelstraClear CEO Interview Dr Allan Freeth and Alastair Thompson will discuss how the Government's intended UFB initiative is most likely to assist to get New Zealanders to the internet traffic jam faster, and how it runs a risk of stifling innovation and investment in New Zealand telecommunications.

© Scoop Media

Alastair Thompson

Scoop Publisher

Alastair Thompson is the co-founder of Scoop. He is of Scottish and Irish extraction and from Wellington, New Zealand. Alastair has 24 years experience in the media, at the Dominion, National Business Review, North & South magazine, Straight Furrow newspaper and online since 1997. He is the winner of several journalism awards for business and investigative work.

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