Building billion-dollar businesses from the beach

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The Digital Future Summit has begun under a weight of expectations with a scene setting speech by Minister David Cunliffe. In a lively address he signaled the government’s intention to invest in telecommunications infrastructure.

“The government sees itself as having an ongoing role as a regulator, investor, owner and customer and sees broadband as a priority through these multiple lenses.”

Cunliffe spoke about last mile connectivity via fibre to the node and government investment in an international cable linking New Zealand and Australia.

Unlike the usual ministerial presentations, Cunliffe’s speech hasn’t been available online, nor have I been able to secure a hard copy. This is because the official version is covered in pen notes which he wrote the night before. The sense of immediacy and authenticity that these late alterations have achieved was the talking point for the entire day*.

With the government signaling a willingness to increase investment in broadband, will the industry put out the welcome mat?

The mid morning panel discussion loaded with heavyweights - Telecom CEO Paul Reynolds, TelstraClear CEO Allan Freeth, Vodafone commercial services GM Tom Chignall, National telecommunications spokesperson Maurice Williamson and Xero CEO Rod Drury – didn’t disappoint.

Reynolds, in his first appearance at a public forum, impressed with his repeated assurances that Telecom would become a customer-centric organisation citing the recent Consumer Survey on ISPs in which Xtra came a dismal last. “We are absolutely focused on rectifying this,” he said, pointing out that he considered customers to include both retail and wholesale.

But what is the reality behind the rhetoric? Reynolds spoke of a 40% increase in Next Generation Network investment and he outlined the plan to get peak speeds of 20Mbps to every town of over 500.

But the most promising sign from Reynolds was his comment that there are too many competing interests at the infrastructure level and that it’s time for the industry to work together. This statement prompted spontaneous applause from the audience. (TUANZ members can get a chance to quiz Reynolds further about Telecom’s plans to share infrastructure at the special pre-Christmas After 5s on Tuesday. For those unable to make it, post your questions in the MemberLine blog and we’ll ask them for you.)

It is now the end of the day and I have returned from the Gala Dinner. In writing up this post I have only referred to two speakers among a line up of around 30.  As a member of the TUANZ events team, I’ve been helping out ‘back stage’ for most of the day so I was only able to see a few presentations. However I did manage to catch the sound bite of the day, courtesy of Rod Drury, who when asked to predict the state of ICT in New Zealand in five years time, replied with the following catch cry:

“Building billion-dollar businesses from the beach.”

 * One of the most lively discussion forums is occuring online within the Plenary – each table has a laptop connected by WiFi which enables delegates to type in questions for Chairman Rod Oram to ask each speaker. Apparently the text discussions that have arisen as a result are proving as fascinating to some delegates as the presenters!

Meanwhile there are 30 registered virtual delegates in Second Life with about half ‘attending’ at any one time.

Categories: Events | Fixed line carriers | Innovation | ISPs | Regulatory

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