Can New Zealand overcome sectoral silos to deliver a vision for broadband that also answers the demands on its primary sectors, such as rural communities?
This question summarises some of the main points raised on day two of this week’s 10th Annual Telecommunications and ICT Summit (Telcon 10 for short).
While Ernie has given a good overview of the day one's highlights, here now is an overview from the second day.
At risk of coming across as being self-serving, I would say that TUANZ’s Ernie Newman was certainly a highlight on the day and his comments certainly seemed to put a bit of fire into the audience, which at one point was described as having "low energy levels".
But on a more objective note, international telecommunications analyst Paul Budde’s address was definitely insightful.
Budde called for trans-sectoral thinking to address issues such as rolling out next-generation networks. He cited examples of how the current government broadband investments in New Zealand, Australia and the US are being driven by leaders at the highest levels.
A true unified approach to such projects can only be driven from the top as this transcends the siloed strategies that exist in different sectors of government and society.
“Top leaders stand above the silos and can direct change,” he said.
Without a trans-sectoral approach debates about how to go about major projects such as national NGNs could carry on for another 15 to 20 years.
The trans-sectoral approach can direct thinking about next-gen networks towards how they can become essential infrastructure for a variety of different sectors from health and education to transport and energy.
This puts the focus on creating infrastructure for nation building rather than immediate financial returns.
But Budde warned that a fibre to the home network in New Zealand cannot be built without Telecom. However, while having 25 local fibre companies are “silly”, Telecom can’t be allowed to have a monopoly either.
Budde was followed by IDC telecommunications analyst Rosalie Nelson who declared that a clear and primary vision is needed for the Government’s broadband investment.
She said the Government’s current proposal is a strategy, rather than a vision.
For instance, if economic development was one of the goals of the initiative, Nelson questioned why a different plan is being drafted for rural broadband, considering that one of the country’s primary sectors – agriculture – is rurally based.
Therefore the Government needs to determine what the country’s core industries need from its investment in a national NGN.
The Government should also decide what its ideal role is – as an investor, facilitator or demand driver.
Meanwhile, Tony Baird, managing director of satellite broadband provider Baycity Communications, said the Government’s planned $48 million investment for rural broadband delivery was not enough.
Baird said 7.1% percent of the country’s GDP, or $18 billion a year, was generated in rural areas.
“The New Zealand economy is driven by the rural sector and $48 million will not deliver what it needs.”
The Government’s broadband investment initiative, with its focus on fibre, overinvests in urban areas and under-invests in rural areas.
Fibre is not the only solution for broadband connectivity, said Baird, adding satellite has 100 percent coverage and can cost-effectively connect people not reached by fixed or wireless broadband technologies.
“Satellite is the answer for rural – it will cover the last 10%.”
Satellite broadband now delivers speeds of up to 8 mbps and this will increase to 12 mbps next year, Baird said, adding voice over satellite is also a realistic option.
Baird reiterated an earlier call that the TSO be reviewed to include newer technologies such as wireless and satellite broadband.
He said the TSO is a 1990s solution being applied to the 21st Century as it focuses on voice calls and dialup internet and does not address broadband.
The TSO is not serving its purpose in delivering telephony services to rural communities, as due to the lack of broadband access and with unmetered local calling, rural users often use their phone lines mostly to access the internet via dialup – essentially leaving them without a voice service.