My two word summary is speed wobbles.
To quote the report:
- The network failed because the network and supporting operations were not ready to manage the levels of traffic it experienced
- Software issues contributed to network instability
- Although the XT network was designed to initially provide planned coverage that matched the CDMA network the initial configuration of the XT network and, some network build issues, led to coverage variability
- Some aspects of the network architecture are overly complex meaning that any faults are difficult to find and rectify
- Immature operational management systems and process failures contributed to the impact of network issues.
No 1 is the big issue, and the rest to my mind seem to be just compounding factors.
This report should be the turning point for Telecom to start restoring faith in XT and its brand. You need a report pointing out the errors, so people think you are now capable of fixing them.
Of course if another major outage was to occur, that would be undermine the recovery of the brand in a major way.
Telecom have also released their third quarter results which are a bit stronger I suspect than expected:
Telecom New Zealand has today announced adjusted Earnings Before Interest, Taxation Depreciation and Amortisation (EBITDA) of NZ$1,336 million for the nine months to 31 March 2010, down 1.9% on the equivalent nine months in the previous financial year and in line with guidance.
The quarter contained a Southern Cross dividend of $14m, versus $40m in Q3 FY09.
While adjusted revenue for the nine months fell by 7.7%, to $3,936m, adjusted operating expenses fell faster, to $2,600m, a 10.4% decrease on the equivalent nine months.
The other big issue for Telecom will be the results of the fibre to the home tender.