Telecom get Auckland and Wellington

December 13th, 2010 at 10:15 am by David Farrar

The Government has announced that Telecom has won most of the remaining areas for to the home rollout. This includes Auckland and Wellington, but in Christchurch and Dunedin the local lines companies are stillĀ  in the running, with both them and Telecom proceeding to negotiations.

This is pretty exciting, as it means Telecom will structurally separate, with Chorus becoming a standalone telecommunications infrastructure company. This will be the most important change in the telco sector for a generation. The details of how the separation occurs will be crucial in determining how beneficial this is.

Vector will feel hard done by, but that is the nature of a tender process. Their involvement has probably meant the bid by Telecom is significantly better for taxpayers than would otherwise have been the case.

Telecom will be pleased to have won the bulk of the country, but not be that happy that they may not end up with Christchurch and Dunedin – they’ll need sharp pencils.

So the overall picture is:

* Hamilton, Cambridge, Te Awamutu, Tokoroa, Tauranga, New Plymouth, Hawera & Wanganui – WEL Networks
* Whangarei – Northpower
* Dunedin – Aurora Energy
* Christchurch, Rangiora – Enable or Telecom
* Timaru – Alpine Energy or Telecom
* Elsewhere – Telecom

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9 Responses to “Telecom get Auckland and Wellington”

  1. TCrwdb (246 comments) says:

    Hmmm, not sure that I share the excitement, probably means that we won’t get fibre to the door until about 2050

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  2. James Stephenson (1,885 comments) says:

    On the plus side, you’ll get service from someone who knows something about running a communications network rather than a crowd who thinks it’ll be just like supplying electricity…

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  3. Bill Bennett (24 comments) says:

    It’s not a done deal yet.

    Telecom’s shareholders have to vote first in whether the company will separate. This means it has to be a good deal from their point of view – or at least better than the alternative.

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  4. freedom101 (439 comments) says:

    What does this mean for CityLink?

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  5. John Q Public (14 comments) says:

    As a shareholder I’d vote for separation long before I’d vote the share price of the combined group down by their not getting this contract.

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  6. George Patton (330 comments) says:

    Somewhere in Newmarket, a building catches fire.

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  7. RightNow (6,350 comments) says:

    freedom101 – not so good for CityLink.
    Added to this news, VDSL2 is now available in WN and AKL with speeds of up to 50Mbps (within <1km from the exchange/cabinet) downstream, at a wholesale price <20% of CityLink's 25Mbps service.

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  8. GJKiwi (179 comments) says:

    Great news. Telecom should have been separated from the year dot, and it should still be separated by legislation to ensure that it happens. It has been the biggest single drag on IT and telecommunications infrastructure development since the 1980s.

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  9. Viking2 (10,749 comments) says:

    Nah, not Telecom, its useless former bosses that had and still have no fucking idea about customers. All the Dean ever understood was using the system to enrich a select group of shareholders without bothering about the longterm. Don’t need to when you are getting old and have plenty to retire with.
    At least Reynolds knows about customers and should be patted on the back for his efforts with a sadly badly managed company that he inherited.
    And don’t forget where else Dean sits. ANZ for one.

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