Siemens and Orcon get together for a $30 million ADSL2+ network

, posted: 18-Aug-2006 11:57

He's Purple!Although Telecom New Zealand and its supporters insist that the new regulation introduced by Cunliffe will lead to no investment by competitors who instead will only "leech" off the existing infrastructure, the reality is shaping up quite differently.

Orcon today officially announced what has been an open secret for a long time: Siemens will chip in with some $30 million to build a wholesale ADSL2+ network for Orcon. While it's still early days and the commencement date for the network is pending on regulatory outcomes and Telecom playing ball, it's encouraging to see that the climate has changed, and that there is a will to invest in telecommunications infrastructure in New Zealand.

I gather Siemens will own half the network once its completed, and Orcon will probably sign up some content providers for IPTV over it as well.

This is the kind of development that we probably would have had in 2003 already, had the Commerce Commission not screwed up by doing a volte-face on local loop unbundling then. The stunningly poor decision by Telecommunications Commissioner Douglas Webb set back broadband development and network infrastructure investment in New Zealand by around five years, unfortunately.

I expect today's announcement will put pressure on Telecom to move forward its investment as well. Even though Theresa Gattung promised on Campbell Live that New Zealand would have ADSL2+ in June, Telecom went back on her word and decided to shift the DSL upgrade until 2007 sometime.

More information

Other related posts:
The problem with VDSL2, part 2
The problem with VDSL2
The mysterious Dynamic Line Management on VDSL2

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