The disappearing ISPs
According to a release
from the Australian Bureau of Statistics last week, the number of
Australian ISPs dropped by 32% between March 2005 and September 2006
from 689 to 467.
While the number of Australian ISPs have remained relatively static
between 2000 and 2005, the market appears to have been consolidating
significantly in the last 18 months:
[Source: Australian Bureau of Statistics]
While the Australian number of ISPs have remained steady until early
2005, the New Zealand market has seen a gradual decline in ISP numbers
iiNet trading still suspended on the ASX
The suspension on trading of iiNet shares on the ASX continues into its 4th week. iiNet is the Perth based owner of New Zealand’s third largest ISP IHUG. According to the Western Australian Business News, no further information is available as to when the suspension will be lifted.
Telecom NZ announcing AAPT sell-off today?
According to The Age, Telecom NZ is going to provide a “meaningful update” in regard to AAPT when it reports its third quarter results later today.
We are hearing rumours that a sell-off of AAPT may indeed be
imminent. We are looking forward to Telecom’s third quarter results
today and what may be announced in regard to AAPT.
iiNet packet loss
It was not a pending acquisition that halted the trading of iiNet
shares on the ASX but accounting errors and flawed financial
forecasting. (iiNet is the Australian owner of IHUG.)
According to Australian IT,
the company said it had become clear that its financial performance for
the 2006 financial year would be “significantly below” its previous
guidance to the market. iiNet issued a statement saying its shares would
remain suspended until at least May 8 while auditors Ernst &
Young investigated “deficiencies in forecasting and clerical errors in
Rumours are still suggesting that IHUG may be divested. Will Vodafone
NZ pick up IHUG to acquire wireline broadband capabilities?
The mothership to the rescue?
It is probably fair to say that TelstraClear was pinning much of its
strategy on the local loop unbundling that never happened. The lobbying
by TelstraClear and the other NZ challengers has been to no avail. Looks
like the mothership is getting into the fight now however. NineMSN
is today reporting that Telstra has told a parliamentary inquiry into
the Australia and New Zealand Closer Economic Relations (CER) trade
agreement there were many benefits in a single telecommunications market.
You bet there would be a number of advantages to a single market! At
least to New Zealand and at least if “a single market” extends to the
Given Telecom’s disappointing performance in Australia via AAPT, they
may not agree on this one however. Anything making it easier for the
Telstra and its TelstraClear subsidiary to compete effectively in New
Zealand is obviously bad for Telecom NZ. We are awaiting the Telecom NZ
responses on this one.
The NGN war is on!
war is on between the Telco incumbents and challengers in markets
around the world. The incumbents are defending their future IP-based
next generation networks (NGNs) now under attack by the challengers. The
was is now intensifying also in Australia.
LLU: too little too late?
About a week ago, Statistics New Zealand released their Internet
Service Provider Survey for the 5 month period 31 March - 30 September
2005. The highlights, if you want to call it that were simple, broadband
uptake grew by 15% and dialup grew by 4%! What can we say, its pathetic.
In contrast, the take-up of broadband in Australia is approaching three million connections, according to a report
issued by the Australian Competition and Consumer Commission (ACCC)
today. The annual growth rate for broadband in Australia in 2005 was 85%
(compared to 94% in 2004). We do not have any annualized figures for NZ
broadband growth, but given that the 5 month broadband growth between
April and September was 15%, we can can safely say that we are slipping
further and further behind.