Southern Cross doubtful of need for Kordia cable

The Dom Post reports that Network says there is little rationale for Kordia to put in place its own cable.

I disagree. I think competition for bandwidth is highly desirable and am pleased Kordia are doing so – with Government backing. I do have a minor concern about Kordia’s ownership of Orcon as a vertically integrated state owned ISP may have some unfair advantages, but they can be managed.

Even with Kordia’s new cable, I think we will in the future have a shortage of bandwidth. That is because rollout of fibre to the home will see bandwidth demands increase 100 fold. Let me use an example Ericsson used in a recent fibre to the home presentation.

Let us say at present you have 5Mb/s speed, and a contention ratio of 50:1. As very few users are using their full speed at any point in time, one can have a high contention ratio as e-mail and web browsing takes up little bandwidth.

Now let us say with fibre to the home you are connecting at 50 Mb/s. That means 10 times the bandwidth needed. But the sort of activities you do on the Internet will change – you may be video conferencing much of the day, and watching Hi Def TV in the evening. So the contention ratio might have to change to be 5:1 not 50:1.

So in a neighbourhood of say 1,000 residents the backhaul bandwidth previously needed was 100 Mb/s. Within a decade it will be 10 GB/s.

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