ComCom foils Telecom plot to slow down DSL
Today's Herald carries a story about the Commerce Commission rejecting Telecom's argument that power has to be reduced on short copper loops in order to provide DSL service on longer ones.
The Commission's decision follows a report from consultant Paul Brooks, which in essence rubbished all of Telecom's proposed spectrum management claims.
In fact, the report says the term "spectrum management" is a misnomer, and that we should be talking about "interference management" instead. Any reputable carrier should put in place an interference management plan as it rolls out DSL, the report says.
However, despite starting the DSL deployment in 1999 already, Telecom has yet to do so. That's right, Telecom's been running the DSL network by taking some pretty severe shortcuts for the past seven years. Even so, it's worked more or less fine now, the report says, so why the hurry to deploy a managment plan now?
Was Telecom trying to prevent an accelerated DSL deployment on the back of further wholesale providers? It's not entirely clear what the incumbent's reasons were for launching the delay strategy, assisted by obfuscated technological arguments that its network manager Alcatel augmented in a report to Telecom, and which was released to media as well. That report backfired on Telecom though, as it was widely seen as an indictment by the network manager on how poorly the incumbent maintained its copper.
Clearly what Theresa Gattung said when the new regulation was announced is... complete rubbish. The above shows that there's no change at Telecom. It's still trying to obfuscate and delay at any given turn, and if you don't believe me, look at Telecom's submission to the Select Committee deliberating on the proposed new regulation currently. Telecom's trying to wangle out of any clause in the new regulation that would matter, and proposes instead a regime that would be different to today's only on paper - in effect, Telecom would carry on regulating itself. I hope the Select Committee is able to see through Telecom's "legalistic argument" (which incidentally Theresa promised not to hide behind).
The ComCom's spectrum management report and decision is hard to find on its Byzantine website, but here's a direct link to it. The report by Brooks is a good read, as it demolishes Telecom's arguments one by one. I'm curious as to why Telecom is allowed to present obviously fallacious arguments like that to a government agency actually.


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Comments
I mentioned this in the Computerworld FryUp newsletter before, but Beehive people tell me that Telecom was essentially an ideological experiment.
It was privatised without any bounds and checks as such, contrary to how these things are done overseas.
It's taken a decade and a half to conclude the experiment, but I wonder if there will be an honest assessment of it?
Posted by: Juha | September 5, 2006 9:16 AM
I agree with Nick and disagree with Rob. The government has no right to do that to Telecom unless Telecom breach the rights of others, which they haven't done.
And Telecom does indeed need to look after the shareholders before the public. As was once said in a PC World article the prime purpose of any business is to make money. However, usually looking after the public (truely doing so not the false perception of it many have) is looking after the shareholders, as satisfied customers are more likely to stick with them.
Posted by: Kane | September 5, 2006 1:15 AM
And what were you expecting, Rob? Telecom management necessarily acts in the best interests of the shareholders, we hope, and this may not be in line with the consumers' best interests. What Telecom has done with the Alcatel report is just a clumsy job; they are culpable only of not obfuscating the argument enough (very hard to do when you have people like Paul Brooks studying your position).
Would a shareholder tolerate a lower return on investment because the company is helping the community? Or more to the point: Why does the New Zealand public expect Telecom to behave altruistically?
Posted by: Nick | September 1, 2006 3:37 PM
The leopard will NEVER change its spots while Gattung is in charge. The only real hope for us gullible Kiwis is for this foreign company to be completely disemboweled by Government regulation.
Posted by: Rob Bell | August 30, 2006 11:07 PM