'Buying NZ Property – Download the free sample readings!

NZ presents some of the most alluring property in the Western World; particularly given the greater easy of residency, the low cost of property, and the liveability of the country. In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!

New Zealand Property Report 2010 - Download the table of contents or buy this 180-page report at our online store for just $US19.95.


Tuesday, March 22, 2011

The cost of the next generation of NZ broadband

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Living in NZ is always going to be a bit of a technological 'drag'. This is a small market, and one of the poorest OECD nations. For this reason, technology is always going to be a little slow getting here. The situation is even worse for basic infrastructure like: Roads, power lines, telco fibre lines, power stations, etc. The challenge is that:
1. There is little incentive for service providers to upgrade infrastructure if their competitors are not. A small market with just a few players gives little incentive for competitive pricing.
2. There is little incentive to adopt the latest technology if there is no growth in the market. National income in NZ is based on cyclical commodity prices, so with a static population, there is little incentive for increasing capital investment unless you have some important national resource like oil & gas or iron ore. NZ has......very little.
3. There is little incentive to be competitive without a regulatory regime to ensure that result. There is a propensity to use the 'weak regulatory framework' to extort highe revenues from customers.
Businesses however have to make money, or there will be even less spending or service. The question is whether the industry is functioning efficiently, and earnings are adequate.

This article outlines the cost and pricing for the next generation of the telco network. The actual cost is uncertain because it remains to be seen whether service providers offer unlimited capacity. I suspect they will want to offer unlimited capacity where they can otherwise they will lose customers, and there will also be excessive customer churn, i.e. Excessive reconnections.


'Buying NZ Property – Download the free sample readings!

NZ presents some of the most alluring property in the Western World; particularly given the greater easy of residency, the low cost of property, and the liveability of the country. In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!

New Zealand Property Report 2010 - Download the table of contents or buy this 180-page report at our online store for just $US19.95.


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