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Championing better broadband for New Zealand 2019 / ISSUE 9 Unlocking broadband's potential Communications Minister Kris Faafoi wants every New Zealander to benefit from faster internet connections ESPORTS FREEVIEW INSPIRE NET BROUGHT TO YOU BY Online gaming goes Broadcast television 20 years from professional moves online dial-up to fibre
Contents 2019 / ISSUE 9 REGULARS 1 Editorial The Network is the Computer 2 In Brief Security fears, installs peak, UFB wireless link 9 10Gbps Fibre Chorus is testing the world's fastest residential broadband 10 TV MOVES ONLINE Freeview launches a 6 streaming service that could see an COVER STORY end to satellite A new Telecommunications Act and issues concerning 5G will keep the dishes and aerials Communications Minister busy. He also wants to close the digital divide 20 Re:Mobile 28 Recycling used mobile phones 22 ESPORTS Fibre Unbundling Professional What is it? Why might it matter? gaming has 24 become a Inspire Net spectator sport Twenty years of pushing at technology's edge 12 RURAL CONNECTIVITY GROUP An innovative approach to filling the gaps in rural broadband and phone coverage 16 Rugby World Cup The pressure is on 33 RANT 18 Bill Bennett is still MyRepublic waiting for the virtual Asia-Pacific's regional service provider reality revolution thedownload.co.nz
The Download | Editorial 1 Editor Bill Bennett The Network is Chorus Editorial Consultants Ian Bonnar, Steve Pettigrew, Holly Cushen Contributors the Computer Scott Bartley, Heather Wright, Hadyn Green, Johanna Egar, Holly Cushen, Sarah Putt Senior Account Director LauraGrace McFarland Designers Jessie Marsh, Julian Pettitt Account Executive Paige Fleming On the cover IF THE HEADLINE is familiar, it could be because they were slow. Often you would use a dial-up Photograph by Nicola Edmonds you’ve been around networks and computers connection with a pre-digital acoustic modem. for a long time. The term pre-dates Ultra-Fast If you were lucky and had a reasonable budget Broadband. It even pre-dates the Internet. you might have been able to afford an ISDN The words are almost forgotten. Yet they (Integrated Services Digital Network) line. This Published by ICG are more relevant and more potent today than was usually a digital copper link that could run at PO Box 77027, Mt Albert Auckland 1350, New Zealand ever before. 64 or 128 kilobits per second. www.icg.co.nz They date back to 1984 and a company called To put ISDN in perspective, Chorus is testing ISSN 2624-1137 (Print) Sun Microsystems. At the time, Sun sold a range 10Gbps. It’s a technology that residential ISSN 2624-1145 (Online) of expensive, powerful graphics workstations. customers may soon use to move data at around They were more powerful than that era’s 100,000 times the data speed of ISDN. personal computers. Yet that was never enough Although the networks were slow, client-server The Download is championed by for the engineers computing was a huge Chorus PO Box 632, Wellington 6140 and scientists breakthrough. It paved www.chorus.co.nz who used them the way for everything The contents of The Download to process huge 'To put ISDN in perspective, connected computers data volumes. and phones do now. are protected by copyright. Please feel free to use the information In those days, Chorus is testing 10Gbps. It's a Along the way, we in this issue of The Download, with attribution to The Download there were small technology that residential stopped talking about computers – PCs mainframes and customers may soon use by Chorus New Zealand Limited. Opinions expressed in The Download and graphic minicomputers. We to move data at around are not necessarily those of the publisher or the editor. Information workstations – and call today’s bigger contained in The Download is big computers, the computers ‘servers’. correct at the time of printing and mainframes and 100,000 times the speed' We also have server while all due care and diligence has been taken in the preparation minicomputers. farms and cloud of this magazine, the publisher is not responsible for any mistakes, Small computers could, in theory, communicate computing. In essence, cloud computing is the omissions, typographical errors or with big computers. It didn’t happen often. client-server’s great-grandchild. changes to product and service Instead, the two types of machines lived most of Today, the network is very much the computer. descriptions over time. their working lives in different worlds. Want to know something? Use Google or Then something emerged called client-server Wikipedia’s networked computers. Want to computing. I’m simplifying here. The idea was process numbers? Buy cloud computer time from that small computers could hand off heavy-duty Amazon or a local cloud vendor. Want to run data processing to larger computers. At the same accounts? Use Xero’s networked computers. time, big computers could hand off the graphics Sun Microsystems understood that in 1984. processing needed to display the fruits of their The company never made it to the promised land. labour to smaller computers. It was wiped out when rivals learned to make Connect with us Facebook.com/ChorusNZ Most of the time, client-server networks were servers from cheap, commoditised hardware. It Twitter/ChorusNZ local. They might cover a single building, a got that strategy wrong, but it saw the potential of Chorus NZ Limited on LinkedIn factory site or a campus. networking long before anyone else. When there were wide-area networks, they www.thedownload.co.nz were exotic and expensive. By today’s standards Bill Bennett 2019 / Issue 9
2 In brief Security fears widespread, safeguards scare Research commissioned by InternetNZ the negatives. When asked to name those found 94 percent of New Zealanders benefits, 83 percent named having access are concerned about the security of to information. their personal data. The number comes Andrew Cushen, InternetNZ's outreach from the organisation's annual survey of and engagement director says: "As more internet attitudes. and more of our lives are spent on the Although New Zealanders worry about Internet, being able to access information data security, most don't do anything online has now become a necessity. about it. Researchers found few users "This is why it’s so important that we take practical steps to protect themselves continue to try and close digital divides from risk. in New Zealand. Every New Zealander Only one-third of New Zealanders deserves the opportunity to harness the surveyed used account authentication, power of the Internet". either two-factor or multi-factor. Cushen says people not protecting Meanwhile less than half make themselves online is something we need Andrew Cushen regular backups. to improve if New Zealanders are to stay INTERNETNZ'S OUTREACH AND There is concern about children safe online. ENGAGEMENT DIRECTOR being able to see inappropriate content He says: "We all need to take personal online. The survey found this worries 92 responsibility for our safety on the internet". content and what to do if they come across percent of those questioned. There are The concern over inappropriate content anything upsetting. Cushen says: "We need positives. Nine out of ten respondents told is a reminder that families should talk to to ensure that people of all ages feel safe InternetNZ internet benefits outweigh each other about the different types of on the Internet." CHORUS, NOKIA WIN GLOBAL AWARD FOR RBI WORK Chorus and Nokia won the Best Broadband Delivering Social Impact award at the Broadband World Forum in Germany. The award is for the two companies’ work on the Rural Broadband Initiative. This included upgrading 1200 rural cabinets. The pair also delivered fibre to 1000 rural schools and upgraded internet speeds for 110,000 households. Chorus CEO Kate McKenzie says: “Chorus’ key target of connecting all rural schools was particularly satisfying, as this has resulted in a major long-term benefit to the nation. We are particularly pleased to observe the strong take up of fibre by schools across the country." One of the side benefits of connecting rural schools is that it enabled Chorus to build fibre-to-the-home connections for many rural communities. thedownload.co.nz
The Download | In brief 3 FIBRE INSTALLS PEAK, UPTAKE CLIMBS Fibre connections on the Chorus There is a clear move to faster plans Most of this is down to the rise in network peaked in the first quarter to and greater data use. The number of streaming video. This is reflected in September 2018. During this period gigabit fibre connections on the Chorus time-of-day statistics, which show Chorus installed a record 46,000 network now stands at 44,000. That is average throughput on the network fibre connections. A further 38,000 up 22 percent on the previous quarter. now peaks at around 8.30pm connections were added in the second Chorus says most connections, about in the evening. quarter to December. 71 percent of the total, are now on By the end of the year, fibre uptake 100Mbps or greater. had climbed to 51 percent, with demand About seven in 10 broadband stronger than during the same period connections are on unlimited data in 2017. With 517,000 connections on plans. This reflects the increased fibre, these now make up a third of all amount of data consumed per Chorus’ 1.5 million connections. connection. In the December quarter, Slower speed copper ADSL the average data consumed across connections have fallen by 25 percent the network was 235GB, for Chorus in the past year. There are up from 221GB in the now 374,000 connections. Some of this September quarter. is down to customers moving to the Chorus says fibre faster VDSL (Very-high-bit-rate digital users now average subscriber line) technology, or to fibre. 315GB per month. BY THE BROADBAND TO REACH NUMBERS 99.8 PERCENT IN FOUR YEARS Extensions to phase two of the Rural Broadband Initiative and the Mobile Black Spots programme are 7 percent set to extend New Zealand's broadband coverage of Australian broadband users subscribed to 100Mbps services, compared to to 99.8 percent of the population within four years. 29 percent Crown Infrastructure Partners has signed contracts worth $130 million to provide improved broadband of New Zealanders services for around 10,000 rural homes and businesses. The extensions will also see another 365km of state highways have mobile coverage. Of that, around UFB CONNECTIONS SAW A 100km will be added on the West Coast. A further 10.5 percent 59 tourism areas around the country will also get mobile coverage. Eight new regional wireless internet INCREASE BETWEEN JUNE 2018 AND SEPTEMBER 2018 service providers or WISPs will join the nine who are already taking part in the RBI extension In the September 2018 Broadband Deployment Update the UFB network programme. reported 47.7 PERCENT uptake. The Rural Broadband Initiative uptake was 40.4 PERCENT Data from the S&P Global market intelligence report June 2018. 2019 / Issue 9
4 The Download | In brief CHORUS TESTS GIGABIT WIRELESS STREET-TO-HOME LINK Chorus is testing Nokia's WPON antenna connected to their indoor Chorus says that in testing, WPON (Wireless Passive Optical Network). router by an Ethernet cable. manages a speed of around 1.6Gbps over It's a wireless technology that connects The system uses unlicensed 150m. The theoretical maximum speed the fibre network in a street to a home frequencies in the 60GHz spectrum. is 3Gbps. In other words it can work or business when a direct physical This is the mmWave or V band. Typically with any existing UFB plan although, connection isn't practical. radio waves at these frequencies are as things stand, it is not suitable for the Among other places WPON solves absorbed by the air and can be subject 10Gbps service that is now being tested. many of the problems with apartment to rain fade. They are often blocked by Ed Hyde, Chorus chief customer buildings and other multiple dwelling trees. While communications in this officer, says WPON is a useful tool in units. It also bypasses obstacles like band are line of sight only, the distances his company's toolbox and builds on installing fibre along rights of way or are small, a few hundred metres at most, other recent innovations such as 10Gbps getting past difficult neighbours. Chorus which minimises the disruption from air services and lower price gigabit services. also sees it being used for places like or water molecules. business parks. Nokia's WPON uses the WiGig standard. That's 802.11ad. The same technology is sometimes used to extend the performance of indoor Wi-Fi networks. A WPON access point can be attached to an access point on an existing telephone pole or lamp post. This connects direct to the fibre running in the street. Customers need an outdoor Provincial Growth Fund to connect marae to net Government will spend $21 million of the Provincial Growth Fund (PGF) connecting marae to the internet and establishing a network of ‘regional digital hubs’. These hubs will be places where people who may not have internet access can get online. They will offer Wi-Fi and co-working spaces. The $21 million for regional hubs is on top of the $80 million set aside earlier IMAGE BY SHUTTERSTOCK.COM to boost the second phase of the Rural Broadband Initiative and the Mobile Blackspot fund. Prime Minister Jacinda Ardern says it is part of the government's commitment to bridging the digital divide. The first marae to receive PGF funding for digital connectivity are Oromahoe (Te Tai Tokerau), Te Houhanga (Te Tai Tokerau) and Raupunga Te Huki (Heretaunga). thedownload.co.nz
5 GARTNER: NZ COMMS SPEND WILL HIT $4.4 BILLION THIS YEAR Research company Gartner forecasts that New Zealanders will spend $13.5 billion on technology products and services this year. That's up 2.6 percent on last year. Gartner says the total will reach $13.9 billion next year. With a spend of $4.4 billion, communications services, which was previously the top category, is now second behind IT services. Thanks to cloud computing, IT services will be worth $4.5 billion. 2DEGREES APPOINTS MARK AUE AS CHIEF EXECUTIVE Mark Aue has replaced Stewart Sherriff as 2degrees' new chief executive. Sherriff has retired. Aue has been the telco's chief financial officer since July 2018, when he joined the company. Before moving to 2degrees he was the CFO at Vodafone New Zealand. Has has previously had management roles at Vodafone in the UK and was a director for Vodafone Fiji. 2degrees Chairman Brad Horwitz says Aue's appointment follows an international search. Commerce Commission seeks better reporting A new Commerce Commission paper shows how the regulator plans to monitor how telcos perform when it comes to customer service. Telecommunications commissioner Stephen Gale says: “Retail telecommunications is a Commission priority, in particular in the areas of billing, switching, contract terms and marketing. Parliament has now given us more tools to improve retail service quality and safeguard consumers." The recently passed Telecommunications Amendment Act means the Commission has to monitor retail service quality. This includes performance, speed and availability, customer service and billing and installation issues. It also means telcos must Mark Aue provide customers with the information they need to make informed choices about 2DEGREES' CHIEF EXECUTIVE technologies and providers. 2019 / Issue 9
Closing the digital divide – it’s a commitment It’s a busy time for the minister. There is the new telecoms act, the 5G networks and the Rugby World Cup on his to-do list. But Kris Faafoi’s biggest focus is on ensuring everyone benefits from the new telecoms technologies, he tells Bill Bennett
The Download | Minister Kris Faafoi 7 K ris Faafoi was appointed Minister where we’re happy with the settings. The to get a product out there fast, we want to of Broadcasting, Communications Commerce Commission will then fine- get the process right in terms of spectrum and Digital Media in early tune its approach and methodologies.” allocation and what we need to do in terms September. By the end of November, he The minister draws parallels between of our treaty obligations. There’s also an had shepherded the Telecommunications the telecommunications and energy educational job. That’s a piece of work for (New Regulatory Framework) Amendment sectors. He says there was a long and the sector to do.” Act through Parliament. complex process to go through with He says there are still outstanding It was a busy start, yet, he says, it doesn’t the energy sector. “Hopefully, we’ve claims regarding spectrum. “We’re at the signal the end of Government plans for the learnt some lessons from that process, stage of looking at what our options are to portfolio. For Faafoi, the most immediate but we expect to have some complex meet them.” and demanding challenge now is the timely conversations until everyone is happy.” Faafoi doesn’t think this will slow down the 5G process. “We can have conversations concurrently with iwi while talking to the telcos about their build timetables and their aspirations 'There is a clear link between making sure for their roll out. If we are diligent about how we do it, all those conversations can all New Zealanders are able to watch the happen concurrently.” Rugby World Cup and the more serious There are politics involved. He says it is matter of seeing everyone can access the important to have a clear focus on what the Government can offer iwi from the start of telecommunications networks' negotiations. At the same time, he says, “it also depends on us talking to our coalition partners about what’s possible. We’re roll-out of the 5G mobile phone networks. THE PRESSURE BEGAN EARLY mindful of keeping all these people happy.” There is also the question of closing the Faafoi’s seat was barely warm before the Fortunately, New Zealand’s digital divide and of reaping the economic industry pressure to get moving on 5G telecommunications sector isn’t a political benefits of both the fibre and 5G networks. started. He says: “In the very first week I football, as is often the case in Australia. But, first, he has to nurse the Act got the portfolio, I went and engaged with Faafoi sees clear benefits in a broadly bi- through its incubation period. Faafoi says: all the RSPs [Retail Service Providers]. partisan approach. “In a legislation sense the regulation is I wanted to get an idea of what was He says: “If you look at the consumer done. That’s great because it gives some important to them. Spark gave us a clear experience, such as New Zealanders’ certainty for the telecommunications message. Simon [Moutter, the Spark consumption of the likes of Netflix and sector. Now we have to make it work. managing director] isn’t afraid of saying other content providers, the fact that “Recently we had Telecommunications publicly what he wants.” UFB is now ubiquitous means that the Commissioner Stephen Gale in here Moutter wants to have a Spark 5G overwhelming majority of New Zealanders talking about how the Commerce network in place in time for the 2021 can access those services at good Commission is going to ready themselves America’s Cup in Auckland. Because of the speeds. That’s unlocking the capability for the deadline. We figured out the finer run up that means by late 2020, less than of broadband. 5G has the potential to detail of implementing the legislation.” 18 months from now. The other mobile extend that.” The Telecommunications Bill is a large network operators are in less of a rush. There has been talk of possible industry piece of work that was started under the Faafoi has a measured approach. He co-operation on a 5G network build. Faafoi previous Government. It, in effect, lays says: “We heard Simon, but we also thinks it’s not the minister’s job to get out how the industry will work in the fibre listened to others. One thing is the public involved in this kind of debate at this stage. era. With the first stage of the government- conversation about what 5G is hasn’t been He says: “If there is any concern about sponsored UFB programme due to finish had yet, and the technology isn’t here yet. competition issues, then the Commerce later this year and the second stage due “As well as speed, we’ve also got to Commission will take a keen interest in to complete in another two years, we now make sure we do it properly. For us, it’s that. The industry co-operation with the need new rules and regulations to deal about balancing the needs of the sector. RBI [Rural Broadband Initiative], most PHOTOGRAPH BY NICOLA EDMONDS with a transformed market. We’ve done this before with 3G and 4G. people think that has been good. Whether Faafoi says: “It’s all new territory. There are other parts of the puzzle that we something similar could work for 5G is up There are lots of components to deal with. have to get right.” to the telco sector and whether the benefits From the consumer perspective, there is While he acknowledges all the work for them. the retail service quality code and the 111 aspirations of the sector, for him the “The competition side is left to the system. If you look at the legislation from emphasis is on getting things right so that regulator. It’s also up to the players. I’m the telecommunications sector end, there’s New Zealand can unlock all the consumer sure if they went down that path [of co- plenty of detail that they would still like to and economic potential of the technology. operation] the Commerce Commission know. It will take time to get to the point He says: “While some in the sector want would keep a close eye on it.” 2019 / Issue 9
8 The Download | Minister Kris Faafoi There is another regulatory issue over who gets to build the 5G network. At the time of writing, Huawei appears to be on the outer. Faafoi says the company isn’t banned. “It’s a regulatory process. The GCSB [Government Communications Security Bureau] has given its take on this process. The ball is now in Spark’s court. It can choose to mitigate some of the GCSB’s concerns. “All the telcos know there is a regulatory process in the TICSA legislation [the Telecommunications (Interception Capability and Security) Act 2013]. Regardless of who the vendor is, they all have to go through the same process. The legislation has been in place for some time, this shouldn’t come as a surprise to them. They’ve all been through it many times before.” It is for this reason that Faafoi is not worried about existing Huawei telecommunications equipment already in the ground or on mobile towers. “My understanding is that this has already been through the regulatory process. If the regulator has said that it meets the test, it’s sure all New Zealanders are able to watch [just] an example of where the process has the Rugby World Cup and the more serious come to a conclusion. There’s a journey "If our future matter of seeing everyone can access the through that process for every vendor and telecommunications networks. we’re at the early stage of that.” sense of identity is Faafoi says one of his main goals is delivered digitally, closing the digital divide. “The economic SPORTING ISSUES LOOM driver we want to get out of the digital The America’s Cup is not the only looming then we can't economy is huge and we want to make sporting fixture likely to pressure Spark. afford to leave sure all New Zealanders have the ability to Later this year the company will broadcast take part in that. What I see with installs is the 2019 Rugby World Cup online. people out" great, but it’s also about getting a handle While some games will also be on Kris Faafoi on what we can do for under-served free-to-air television, there are fears the MINISTER OF BROADCASTING, families that will make a difference.” event could run into problems. After all, COMMUNICATIONS AND DIGITAL MEDIA He has taken a close personal interest in there are precedents. Last year Optus had the issue since before he became minister. issues streaming the football World Cup That covers the back end. When it He says: “I’ve sat on a Computers in in Australia. comes to the end users, Faafoi says Homes’ board for a year and half in my Faafoi says there are lessons from the education is the next step. “Not everyone own electorate. I know there are lots of Optus experience that can be applied to has a smart TV. If New Zealanders want great community-based organisations Spark and the Rugby World Cup. After all, to watch at home and their TV isn’t smart, doing good work to see that refugees, rugby is important to New Zealanders. they’re going to have to get an upgrade or recent migrants and families that are While he doesn’t think the Government find a way around this and learn how to use struggling financially can have access needs to step in, he says his office is staying the technology before it starts. to the type of basic kit that allows them in close contact with Simon Moutter and “Eight people in a family all huddling to take part [in the community] and, his team at Spark. around an iPad is not going to be fun. importantly, that their kids can take part. “We’re asking questions like will “A lot of households will have to clue “They will be working in a world that’s everyone who wants to watch it be able to be themselves up about getting signals to their different. If they can’t get in from an connected in time? televisions. I’d rather they figure that out early age, then they won’t be prepared “I can’t go into detail, but I’m confident early, so they don’t have to sit there with a for the economy that is ahead of them. If that Spark has mitigated concerns in terms cold beer at the first game and battle with a our future sense of identity is delivered of their transmission. The problems Optus remote control or their Chromecast.” digitally, then we can't afford to leave faced have been identified and fixed.” There is a clear link between making people out.” thedownload.co.nz
The Download | 10Gbps 9 GETTING READY FOR FIBRE WORLD’S FASTEST HOME BROADBAND by Bill Bennett CHORUS IS TESTING a residential available in 2014. Today this is the fastest 10Gbps fibre service. It’s the fastest growing plan on our network, with more home broadband available anywhere in than 44,000 customers.” the world. Ana Pesovic, Nokia’s marketing director As you might expect, 10Gbps can deliver for fixed networks, says her company has impressive performance. There is enough 19 deployments worldwide and over 50 bandwidth to stream an 8K video alongside XGS-PON trials are underway. four high-definition 4K videos, all from a She says industry analysts forecast that single access point. You no longer need XGS could overtake GPON in few years to wait to play that new 25GB Xbox game. (GPON stands for Gigabit Passive Optical Click download and it will turn up on your Network). There are a few reasons why this console in 20 seconds. will happen: 10Gbps is so new that most homes aren’t First, it means a service provider can properly equipped to use it yet. Even the offer business products at the same time best Wi-Fi router could only distribute a as domestic broadband. There is no need fraction of its available bandwidth around Ana Pesovic for two access points. This means higher NOKIA’S MARKETING DIRECTOR your home. To get the most from a 10Gbps margins for service providers, allowing connection, you would need to have a them to move up into more demanding wired 10 gigabit Ethernet network. trial. Chorus expects others to follow. enterprise markets. That’s still rare for domestic set-ups, and The 10Gbps trial uses Nokia’s XGS-PON Another reason is it gives a service even then there are still bottlenecks. To technology. This upgrades Chorus’ existing provider a competitive advantage. put 10Gbps in perspective, it is faster than fibre network to handle 10Gbps in both Pesovic says market-leading speeds and everyday computers write data to their directions: up and down. It can sit alongside high-bandwidth upstream services are hard drive. Most solid-state drives can’t today’s residential networks and gives increasingly popular with residential match the speed. Chorus a straightforward upgrade path to customers demanding a premium Around 30 users will be helping Chorus offer 10Gbps everywhere fibre is available. experience. 10Gbps offers symmetrical with its trial. One condition for taking part Ed Hyde, Chorus’ chief customer bandwidth. That’s an important is testers must have a device that can cope officer, says XGS-PON reinforces its ability differentiator for service providers. with 10Gbps. Eventually, those 10Gbps to easily upgrade the world-class fibre She says: “Last, but not least, XGS is devices will be commonplace, but not yet. infrastructure it has been building as the increasingly gaining interest for mobile At first, the service will only be available latest technologies become available. transport. With the imminent arrival in Avondale and Birkenhead in Auckland, Hyde says New Zealand’s broadband of 5G mobile services bringing higher and Johnsonville in Wellington. speeds have been rising fast. “In 2011, capacity and higher mobile cell density, Chorus is working with retail service the average broadband speed was just 10G symmetrical fibre networks can be providers to offer 10Gbps services to 10Mbps or so. When Chorus’ fibre plans used for mobile transport. This increases testers. 2degrees, 2Talk, Kordia, Orcon, first launched, in 2012, the top speed then the synergies between fixed and mobile Slingshot, Stuff Fibre and Trustpower are available was 100Mbps. We were then networks, resulting in cost savings and the among the RSPs who have signed up to the the first to make gigabit fibre broadband acceleration of 5G.” 2019 / Issue 9
10 The Download | Broadcasting Freeview CEO, Jason Foden MOVE TO ONLINE TV SIGNALS BIG CHANGES IN BROADCASTING Fibre is taking over from conventional television delivery, and Freeview is now pushing this move with a new streaming service. Sarah Putt reports THE DAYS OF aerials on rooftops may be It has Wi-Fi capability, and there are plans numbered as New Zealand households sign to enable direct access to an Ethernet port. up to fibre-based broadband services and The device has Chromecast built in, can more television content is delivered online. stream 4K ultra high definition content Freeview has introduced a streaming and its Bluetooth remote control includes device called Dish TV SmartVU X, which voice search. allows Freeview channels to be streamed Consumers with the device can access for the first time, so there is no need to 12 channels via IPTV (Internet Protocol use an aerial or satellite dish. It is small Television) as well as apps such as Netflix, enough to fit into the palm of your hand Lightbox, YouTube, Stuff Pix and more via and comes with a magnet, so users can the Google Play digital distribution service. attach it to the back of their television set. The Freeview On Demand streaming thedownload.co.nz
11 service will be added later this year. port and a broadband connection. The longer able to access Freeview via a Freeview was established in its current vast majority of New Zealand homes have roof-top aerial or satellite dish? form during the ‘Digital Switchover’. those things.” Foden estimates broadcast transmission This was the government initiative to Foden is ambitious about adding more won’t be switched off for at least another move from analogue to digital television content – both free and subscriber-based. It 10 to 15 years. The service is owned and transmission, from 2012 to 2014. Freeview currently has Spark’s Lightbox, and Foden managed by Kordia in New Zealand, is a joint venture between TVNZ is in discussion with Spark about sports with broadcasting service provider JDA (45 percent ownership), MediaWorks content, in particular the Rugby World Cup. servicing some of the country’s regions. (33 percent), Māori TV (17 percent) and “We’re really keen to offer that service But, if the Government makes the call to Radio NZ ( five percent). on the IP platform, so this major sporting switch off broadcast transmission, there Freeview CEO Jason Foden describes event can be easily accessed in Kiwi will likely be a mass marketing campaign the service’s customer demographic as homes. I can’t say 100 percent that it will advising people to take up IPTV services. “slightly younger” when compared with happen, as we are in conversation with Chorus’ Rodgers is more bullish about the current pay TV subscriber base. “We Spark, but we have a mutual aspiration the end to broadcast transmission – he have engagement with over one million to broadcast a range of content to the would like to see it turned off in 2025, households, that’s about two-thirds of broadest possible audience.” when the second phase of the Ultra-Fast New Zealand homes, with access having Broadband roll-out will be completed. grown nine percent since 2016,” he says. “I would have thought 2025 is a great The move by Freeview to offer streaming time-frame to aim for. The current services is expected to further its reach UFB will be completed in 2022, it seems – and to deliver content from the range perfect,” he says. of New Zealand broadcasters to more “Shut down broadcast transmission and Kiwi audiences. Foden says 10 percent of the copper network and create a fibre- New Zealand households currently don’t based digital society. Isn’t that the reason have access to broadcast television via for the UFB? Broadcast transmission is either a UHF aerial or satellite dish. only capable of doing linear TV, it can’t There are three ‘household types’ in do 4K content, it can’t do Video On particular that Foden says the new service Demand. You need an aerial, and, with all will appeal to: those living in new builds the densification happening in Auckland, where fibre has been installed and there people aren’t able to get UHF aerials and is no television aerial; people who live in satellite dishes,” he says. apartments or in a flatting situation, and Kurt Rodgers Other countries are considering switching people who may want to access television CHORUS’ NETWORK off broadcast transmission, with Belgium in other parts of the house, such as a second STRATEGY MANAGER and Switzerland being among the first to living area with no direct aerial connection. make the call. Belgian Dutch-language Foden says while a fibre connection Foden is also open to working with Sky public broadcaster VRT pulled the plug on is preferable for consumers wanting to TV and would like to have its content made its service in December. It claimed it was use streaming services, those who don’t available via the new service. “We’d love costing over €1 million a year to sustain have access to Ultra-Fast Broadband to have Prime on board, and to have Fan and only served 45,000 viewers. And the services can use a VDSL (Very-high-bit- Pass and Neon [movies] available on the Swiss public broadcaster SRG says it will rate digital subscriber line) connection. platform,” he says. terminate digital terrestrial distribution of He recommends an unlimited broadband “Our primary focus for SmartVU X is its television channels (DTT) in June. SRG plan for “peace of mind”, and he notes that expanding the streaming channels [Prime says only 1.9 percent of households still use Freeview is “ISP agnostic”, so it doesn’t and Choice] and getting ready for the DTT and advises those affected to move to matter what internet service provider a Rugby World Cup,” says Foden. satellite, cable or IPTV services. consumer subscribes to. While the most popular channels Both Foden and Rodgers agree satellite Chorus’ network strategy manager, on Freeview are from the major New technology is likely to exist for many Kurt Rodgers, is enthusiastic about the new Zealand broadcasters such as TVNZ more years because people living in service. He says giving users the ability and MediaWorks, it carries a number of remote locations can’t access the high- to switch seamlessly between traditional channels designed for niche audiences. speed broadband services needed for broadcasters and online providers using Foden says the move to IPTV presents IPTV services. one remote could be the “gateway drug” an opportunity for new content creators Rodgers says the end-goal for to IPTV, especially for those viewers who who might not be able to afford broadcast New Zealand should be to push fibre out have so far shied away from online services. transmission. The cost of IPTV delivery to 99 percent of the population (when “It’s made for the mass market, for is cheaper because with CDN (Content UFB2 is complete it will be available to people who aren’t tech savvy,” he says. Distribution Network) you only pay for the 87 percent). “But we would always need “All you need is a television, a HDMI people who actually watch it. to acknowledge that there will be that last (High-Definition Multimedia Interface) So, how long before consumers are no one to two percent.” 2019 / Issue 9
12 The Download | Andrew Button FULL BROADBAND COVERAGE IS COMING – and rural service choice Rural New Zealanders will get a choice of mobile network provider once the fibre-and-wireless broadband network covers the country. Better services should follow. Heather Wright reports O nce upon a time in the world of time in rural New Zealand – it immediately as well as capital that is being provided telecommunications, population appealed to me. Doing something good direct from government agency Crown coverage was considered a major for the community rather than something Infrastructure Partners (CIP). competitive advantage. Each mobile that is a business proposition is highly In December 2018, the Coalition network would market itself as covering aspirational,” he says. Government announced a further $40 the area where the largest percentage of “With the Rural Connectivity Group, all million investment from the Provincial New Zealanders ‘live, work and play’. One three mobile network owners are turning Growth Fund (PGF). This is overseen by network even launched with an advertising around and saying it should be equal Infrastructure Minister Shane Jones. The campaign featuring a Hollywood stunt- coverage for rural New Zealand, and the money will be added to the RBI2/MBSF woman sitting on a shipping container differentiator will be the services they expansion budget. This is to extend mobile floating in the middle of the ocean while provide on top of that network.” broadband services to more households she talked on her mobile phone. and bring total broadband coverage Now thanks to the Rural Connectivity WHAT IS THE RCG? up to 99.8 percent of the New Zealand Group (RCG), coverage is no longer a key The RCG was formed in 2017 as a response population. differentiator in the telcos’ marketing to the then National Government’s While the RCG has the lion’s share of playbook, at least not for the three mobile decision to extend the Rural Broadband the contracts entered into by CIP, there is network owners (MNOs) Vodafone, Spark Initiative (RBI) programme to 74,000 an additional $17.5 million in funding that and 2degrees, who are equal shareholders rural households, delivering a broadband has been awarded to 17 regional wireless in the RCG. service of around 20Mbps. In addition, service providers (collectively known It’s this commitment to providing an the Government created the Mobile Black as WISPs). equitable wholesale broadband service Spots Fund (MBSF), aimed at providing across New Zealand that attracted Andrew better mobile coverage on rural highways THE ROLL-OUT PHOTOGRAPH BY LARNIE NICOLSON Button to the role of Executive Programme and at remote tourist locations. The RCG has undertaken to build a Director of the RCG. He has previously The $225 million contract was signed minimum of 400 new sites capable of worked for Ericsson and Nokia Siemens in September 2017. The bulk of the delivering 4G mobile broadband. There is and, just prior to joining the RCG, worked money, $150 million, comes from three a stretch target of 454 sites to be built by with application companies, Mobile instalments of the Telecommunications the end of 2022. And there is an expansion Mentor and Blerter. Development Levy. This is an annual $50 programme that will see an extra 120-plus “As soon as I read about the intent (of million industry levy that is due to come to sites built by 31 December 2023. the RCG) and the target audience – being an end in 2019. There is also a $75 million There will be one Radio Access Network a Taranaki guy and having spent lots of contribution from RCG’s shareholders, (RAN) unit at every site, which will deliver thedownload.co.nz
13 "All three mobile network owners are turning around and saying it should be equal coverage for rural New Zealand and the differentiator will be the services" Andrew Button RCG EXECUTIVE PROGRAMME DIRECTOR 2019 / Issue 9
14 The Download | Andrew Button mobile and broadband services from than $100,000 to over $500,000 and Then there are the backhaul costs each of the three MNOs. From the user’s depend on a range of factors such as (getting traffic from the rural sites to perspective, this means that regardless the remoteness of the location, the telecoms hubs). Satellite is the most of whether you subscribe to 2degrees, cost of gaining resource consent and expensive and delivers the least capacity, Vodafone or Spark, you can use your the availability of electricity. Even the so is likely to be deployed for less than 10 mobile to make a call when you are in an wind can ratchet up the price, as Button percent of sites. Fibre will be used in up to area covered by the RCG. 30 percent of sites and microwave radio For urban folk this might not seem like technology for the remainder. a big deal, but Button says being able to Button won’t comment on which access all three networks will be a huge "The level of technology partner the RCG is in talks step forward for people living in rural with, but it’s probably safe to assume and remote areas. “This provides choice industry and technical that Huawei is off the list given the for rural residents and workers, and it collaboration [two Government’s current aversion to means rural service providers will remain its presence in New Zealand. The connected regardless of which mobile technologies and telecommunications portfolio is now network they are presently with.” three network part of Minister Kris Faafoi’s remit, In addition to the MNOs’ RAN there will but Button says he works with the be space at each site for another operator operators] is not Government through CIP, which is also to locate its equipment. This could be one only new for this the entity responsible for the Ultra-Fast of the WISPs or another entity such as the Broadband roll-out. emergency services, Kordia or business country, it may even RCG employs up to 20 full-time staff telco, TeamTalk. be a world first" (some are still being recruited). It boosts Conversely, it may be that the RCG this core team with resources from its decides to co-locate on a site owned by Andrew Button shareholding companies, the three RCG EXECUTIVE PROGRAMME DIRECTOR another organisation. “If the existing MNOs. In addition, there are contractors infrastructure is in a location that will who work on time-bound projects, satisfy our needs and the commercial explains. “We’ve got some sites that we such as the programme to integrate the offer is within the cost of us building our are looking at in the Tararua district and RCG’s network with the three MNOs, own, then absolutely we will co-locate on its actually the wind loading that will drive and representatives from design and someone else’s equipment,” Button says. the costs of those sites more than any other build partners Downer NZ, Connect 8 Individual site costs vary from less individual component.” and Broadspectrum.
15 To date, the RCG has built three permanent operation for over a year, Button explains actively working on 283 sites of the 454 sites. sites – at Raurimu in the Ruapehu district, that as a start-up organisation it had to first Button is confident that not only will the Kaihu in Northland and Lake Wahapo on establish ‘resource and process’ before RBI2 be completed on time, it will come in the West Coast. All three currently provide specific site acquisition could begin. ahead of schedule, a year earlier, in 2021, 3G services from each MNO. “Site acquisition is not an instantaneous although he notes there will always be that process – identifying the location you “hard site” that takes longer to finish. HAAST SITES wish to build a site at, understanding the Even then, the relentless march of There are also four temporary sites located land-owners’ requirements, engaging with technology will likely mean changes are at Haast and along State Highway 6 on the local community, iwi and government needed. By 2022, 5G is expected to be the West Coast of the South Island. One agencies as appropriate, getting the lease operational and there might even be a temporary tower, in the Haast township, approved and then getting the resource fourth mobile network. is supported by three roadside sites. These consent takes many months,” he says. Button says the latest evolution in were installed before Christmas to enable In addition, the process of integrating mobile is part of their “future thinking”, better safety on what can be a dangerous the RCG network with the MNO networks, but a new mobile network operator is not. section of the state highway. The roadside which each have their own unique “That doesn’t mean yes, that doesn’t mean sites were each built in a container with a architecture, is a big piece of work that no. I honestly haven’t considered that. pre-installed antenna, satellite dish and isn’t expected to be completed until mid- That’s a question that would need to be diesel generator. 2019. The first permanent site delivering answered by the shareholders – Vodafone, Once permanent sites are built at Haast, 4G connectivity can’t become fully Spark and 2degrees.” the intention is for the container-sites operational until this work is done. Dealing with the task at hand is probably to be deployed elsewhere. However, 3G “We will end up with a period of time enough to be getting on with. Button connectivity will remain even after 4G is where we are building sites, and then a says the level of industry and technical delivered, says Button, because VoLTE, number of sites will all come online at the collaboration is not only new for this which enables voice services over 4G, same time, once the MNO integration country, it may even be a world first. can’t be accessed by users with overseas work is completed, and then the “Shared networks have been considered SIM cards, so the company will have to programme will flow logically from that and implemented in many other run a 3G service as well. (VoLTE stands for point onwards,” Button says. countries, but shared networks across Voice over Long Term Evolution and is the In January the RCG was ready to begin two technologies, across three network technology used by 4G wireless networks.) construction on 10 sites, with another batch operators, for the geographical coverage When asked why there aren’t more sites to follow. It had lease approval for 54 sites, we’re looking at in New Zealand? We think established, given the RCG has been in had gained 47 resource consents and was that’s actually unique.” 2019 / Issue 9
16 The Download | Spark Sports Spark Sport team Live RWC – it’s a gamble The Rugby World Cup is coming soon, but how well will Spark deliver the iconic Big Event. Hadyn Green considers the challenges facing the telco as the pressure mounts IT’S 2008 AND Beijing is hosting the deliver what is possibly the most popular will provide not only the load test that Olympics. TVNZ has the broadcasting sporting event in this country, the Rugby Spark needs, but also give an indication of rights and, alongside its traditional World Cup (RWC). No pressure. fan satisfaction. terrestrial service, is offering an online The big question hanging over Spark Sport Premier League fans have suffered more service. You can log on to the TVNZ is: how well will it work? As of now, offering than most in recent years with the demise of website and watch live feeds of the Games a stable streaming service for live sport is Premier League Pass followed by the poor from the various venues. The quality isn’t a gamble. implementation of the BeIN Sports’ online exactly 4K, but it’s better than the dodgy Fan Pass and Sky Go have been maligned option. It’s fair to say then that the current illegal streams and the coverage of events in recent years for crashing when they come mood concerning Spark Sport is one of is nearly perfect. under any kind of big load – usually during scepticism. So, what do we know? Cut to 2019 and online sports streaming All Blacks games. These failures have left is dominated by the leagues, such as many wondering if Spark is setting itself and THE SPARK VIEW ON the US’ National Basketball Association rugby fans up for a fall. STREAMING SPORTS and National Football League, and TV Of course, it’s not just rugby. Spark Sport Spark Sport will be a live, on-demand operators like Sky. We have neither the will also have English Premier League sports streaming platform built by same level of coverage or freedom we had football (from August 2019), Manchester iStreamPlanet, which currently supports a decade ago. United TV, rugby’s Heineken Champions streaming for NBA League Pass and the But now New Zealand’s biggest telco Cup, Formula 1 and the FIH Hockey Pro Olympics. Jeff Latch, head of Spark Sport, is venturing into this space with its new League. Starting just a month out from says the business chose iStreamPlanet as it streaming service: Spark Sport. It plans to the RWC kick-off, the Premier League has “an impressive pedigree”. It provides thedownload.co.nz
17 the streaming platform for a number of Spark Sport will charge $20 a month Latch says: “We believe by making large sports events. These include the for all its content. There are no ongoing sports content more affordable – through Super Bowl, basketball’s NCAA March commitments and it starts with a one flexible plans and packages – and by Madness, and the Formula 1 TV Pro month free trial. The RWC will also be offering it over a range of options, for when channel. Also, its ability to provide support offered as a standalone subscription, and where people watch games or events, for “a very large number of concurrent however, with options for the tournament we are making sport more accessible to users” is impressive. and individual game passes. There will New Zealand as a whole.” He says: “iStreamPlanet will provide also be a “freemium” model with some the bulk of the technical infrastructure content available even if you don’t want to TREATED AS PINBALLS for Spark Sport, including video encoding pay for a subscription. In general, New Zealand sports fans and distribution, user authentication, have found themselves being treated subscription management and billing, as pinballs, knocked around by media and app development, across a wide range companies as they jostle and fight over of devices.” broadcasting rights. Currently, there The range of devices is set to expand 'Starting just a are only a few sports available to stream after Spark Sport’s launch, as will the month out from the direct from source and most of these are number of functions. RWC kick-off, the American sports backed by big money. The Latch is also clear that you won’t need rest are often the sole domain of pay-TV broadband fibre to stream sport (although Premier League will (tennis, golf, league and so on). it will help). provide not only the Spark Sport is a refreshing change in the “If you do have a slower connection, New Zealand media landscape, offering we will automatically adjust the quality of load test that Spark something new and providing some your stream to fit your connection speed. needs, but also give competition for the old guard of sports So, the actual quality of the video you’re coverage. Whether the infrastructure will watching will depend on the quality of your an indication of fan hold up under the strain is yet to be seen – internet connection – as well as the type satisfaction' and tested. Early games shown will either and quality of your devices, and your home be a catastrophe or a triumph. set-up,” he says. This is already the case Last year, during the FIFA World Cup, for Netflix and Lightbox. There will be advertising on the football fans were furious when Australian However, there is a back-up. TVNZ platform. However, there will be no telco Optus’ online coverage broke down. will be the free-to-air partner for Spark adverts during game play or straight after Viewers were left staring at “playback Sport during the RWC and a number of the Haka. This is currently done well error” messages. Optus had to offload the games will be broadcast over its terrestrial on other international sports streaming tournament to SBS TV to broadcast the network, including the final. This is not sites such as MLB.TV and Rugby Pass, matches. Spark will have observed this – only helpful for those with poor internet where advert breaks are replaced with and the damage it did to the Optus brand. connectivity, but also for those who can’t either a live feed from the stadium or It’s likely hoping everything will play out afford a subscription. short highlights. well, even more than rugby fans. THE OLD RIVAL – WHAT IS SKY DOING? Sky TV has long been criticised for its Rugby, Rugby League or F1 racing. from what had been a useful service. stubborn refusal to embrace streaming. The streaming was slightly better than Fan Pass remains innovative though. It But this is changing. Its Neon movie the Sky Go app and the prices weren’t is available as an app on most new smart and television service is no longer the too bad. TVs and on nearly all mobile devices. dud it was a year ago – very little HD The service then switched to monthly, Sky also offers free Google Chromecast (high definition) content, expensive and weekly and single day passes. And, streaming video as an incentive. This unreliable. It is now a reasonable service instead of individual sports, it offered live allows fans to view sports from their PHOTOGRAPH BY ROBIN HODGKINSON worth paying for – especially if you like access to Sky Sports 1, 2, and 3. televisions. But there is no on-demand Game of Thrones. Then, during rugby’s Lions Tour version and Sky’s special pop-up When it comes to sports, however, Sky in 2017, Sky decided to change the channels remain on Sky only. keeps making blunders. pricing structure. Single day passes Sky still owns the rights to a large Fan Pass was a welcome addition to were removed, prices for monthly number of sports, including tennis, golf New Zealand’s streaming market when subscriptions were doubled and six- and cricket, so it’s not about to disappear it was first launched in 2015. At first, monthly and yearly options added. The from the market any time soon. fans could buy full seasons of Super result was a lot of people turning away 2019 / Issue 9
18 XXX | XXX Vaughan Baker, MyRepublic group director for government and corporate relations CREATING GOOD HEADACHES Asia-Pacific’s only regional internet service provider (ISP) MyRepublic is growing fast and creating a few benign headaches along the way as it helps boost entrepreneurial culture in the region. Sarah Putt reports V aughan Baker is helping cause I’m resigning’. And it’s not to go somewhere 2017, according to Enterprise Singapore. headaches for his friends else. They’re off to give the start-up they’ve Baker believes New Zealand could in Singapore. been working on in their bedroom a go. reap similar benefits because of the keen Baker, who previously headed up “That entrepreneurial way of thinking is uptake of fast broadband here. It represents MyRepublic New Zealand, is now the promoted by the fact people have got this a “tremendous opportunity” for New Singapore-based group’s director for always-on connectivity – that’s the base Zealand, he says. government and corporate relations. layer. It’s one of the pillars,” says Baker. His wider view of the Asia-Pacific region MyRepublic bills itself as the first purpose- “My mates have no choice but to shake has driven home to him the fact New built ultra-fast broadband provider in the their hand, wish them luck and maybe ask if Zealand has a head-start over the other Asia-Pacific region and offers 1Gbps services they need any seed capital.” countries that the Singapore ISP operates as its entry level product in Singapore. Singapore is reaping the rewards of its in – with the exception of Singapore itself. “I’ve got quite a few expat mates focus on infrastructure (along with the Singapore kicked off its government-led, working in finance, oil and gas and IT, wider start-up friendly environment). The nationwide broadband network back in and they dread the day the young smart island-state’s start-up companies closed 2006 and has had 1Gbps services, priced at Singaporeans who work for them say, ‘Boss, US$1.2 billion in venture capital deals in less than S$50 a month, since mid-2015. thedownload.co.nz
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