Broadband performance

June 16th, 2008 at 8:14 am by David Farrar

The report on performance in Q1 of 2008 is here.

The retail market shares are:

  1. Telecom 65%
  2. TelstraClear 11.5%
  3. Vodafone 9.7%
  4. Orcon 7.2%
  5. Slingshot 6.5%

The best city in terms of broadband performance was Hamilton with Auckland and Dunedin 2nd=, then Wellington and Christchurch. Here are the top five for each city in order:


  1. TelstraClear DSL
  2. MaxNet
  3. Kiwi Online
  4. Inspire
  5. WorldxChange


  1. Orcon
  2. Compass
  3. WorldxChange
  4. Telecom
  5. Slingshot


  1. TelstraClear Cable
  2. MaxNet
  3. Inspire Net
  4. TelstraClear DSL
  5. Actrix


  1. TelstraClear Cable
  2. Snap
  3. MaxNet
  4. WorldxChange
  5. Inspire Net


  1. Orcon
  2. Compass
  3. Telecom
  4. WorldxChange
  5. Vodafone

They do not just mention speed, but a variety of performance indicators.

My home connection in Wellington is with Ihug, now Vodafone. They are third lowest in Wellington and I do have to say since they were taken over I have found the performance disappointing. I love their mobile products, but may look at moving my home connection at some stage.

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2 Responses to “Broadband performance”

  1. ghostwhowalks3 (387 comments) says:

    Yes Ihug/Vodafone is dissapointing. But I see the new cabinets are being rolled out in Auckland so they wont have to use the telecom equipment past the local loop

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  2. dave strings (608 comments) says:

    They don’t now! They can install their own FTTH if they want to invest – but they don’t, they’d rather cherry-pick the easy high profit stuff.

    I hope that Telecom is able to charge a reasonable access fee to teir cabinets as and when they are all there and running. If the current estmate of $1.2 billion is right, and 12% pre-tax is a reasonable return on investment, and there are 2 million potential ‘connections’ for FTTN broadband, and the ‘cost to profitably service’ is 100% of depreciation, that would give a ‘base cost’ of $12 per connection per month. Add in the rest of the infrastructure cost of an ISP as being the same again, makes $24 per month, then add the cost of local, national and international data transmission at about 1 cent per megabyte, and for a one gigabyte monthly connection there is a cost of $34 add to that the profit of the ISP (say a markup of 40% giving a pretax margin of 28.5% (19.95 after tax).

    As with a car, speed is available, but can you afford a Maserati?

    Add on your own expectation of gigs at $14 per gig including margin, (the 1 gig base would probably handle most people’s email these days,) and you can see what the ‘most likely’ cost of high-speed Boad band will be for you. (IF everything was equal, there was no product cost cross subsidy and you could buy the service unbundled at retail the same way as comms companies can at Foundations and/or wholesale levels.

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