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20-02-2020, 09:25 PM
#2591
Originally Posted by USbasedInvestor
My experience then, is that the cost of fiber deployment is so high that the provider has to have significantly higher prices than were experienced in the market before. This creates an umbrella for legacy service prices to be raised. Which then results in more folks dropping their landline, etc. In the states we are experiencing folks dropping cable for the first time ever (in total). It does not help that Verizon makes me click off an ad before I can watch tv - they are hungry for revenues anyway they can get it.
The above quote is from six years ago, talking about the US market for fibre. Over there I am not sure they have the retail wholesale split we have in New Zealand.
Something rather unusual happened to me in the same week in two different centres concerning two quite different houses that I am responsible for looking after.
The first was in Christchurch where the man from 'Enable' knocked on my door. Now for those who don't know, 'Enable' is the Christchurch Council owned broadband infrastructure company. They do what Chorus does in most other parts of the country.
"Was I thinking of getting fibre broadband?"
"We are probably going to be rolling it onto your land (I am on a cross lease with two other properties)."
After I said no
"Should we contact you again in six months? Do you think you might change your mind?"
It was quite a hard sell from a man whose opening gambit was:
"I haven't come to sell you anything."
The odd thing about this is that I can't become a customer of 'Enable'. They would have to refer me to a retail broadband seller.
In the Wellington district I got a letter from Chorus:
"Connect with fibre and we will load $200 onto the enclosed pre-paid mastercard".
Now I do know that the neighbours recently connected to fibre and the Chorus truck was in the street for several hours setting it all up. So maybe they are thinking.
"We have done all the hard work in this location. Let's see if we can sign up some neighbouring customers."
But once again I cannot become a customer of Chorus. I would have to go through a third party retail broadband supplier. I won't be taking up this second offer either. But it did get me wondering. Why was I approached by wholesale broadband network builders at all? Anyone else been approached in this way? What does it all mean for Chorus?
SNOOPY
Last edited by Snoopy; 20-02-2020 at 09:36 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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21-02-2020, 08:01 AM
#2592
I think we had a letter/leaflet or two from Chorus when Fibre was being put in the street, but no one directly from Chorus knocking on the door, and it saying to contact you current telco or words to that effect, who then in turn tried to sell me Wireless braodband, which I tried for a month or so but it didn't do what they said it would do, one thing was alarm monitoring, something about the cell network could/would not connect to it so I could not turn it off/on etc remotely via their app - it could send out so the montoring company gets the signal etc, but I could not connect to it outside of my home wireless network. Anyway switched over to Fibre for no additional costs.
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21-02-2020, 08:40 AM
#2593
Originally Posted by Jay
I think we had a letter/leaflet or two from Chorus when Fibre was being put in the street, but no one directly from Chorus knocking on the door, and it saying to contact you current telco or words to that effect,
Yes I remember the same thing when fibre rolled out past the front entrance to the driveway in Christchurch. We got a letter in the post from Enable. However it was definitely an information drop rather than any kind of hard sell.
Originally Posted by Jay
....who then in turn tried to sell me Wireless broadband....
I have gone over to fixed mobile wireless broadband by Spark and find it excellent for my purposes. Spark no longer has to pay a monthly fee to Chorus if a customer elects to go 'fixed wireless'. So there is a big incentive for Spark to promote fixed wireless.
The latest letter offer from Chorus means I have to sign up for my MasterCard 'Cash Card' first to get the $200 incentive, THEN contact my chosen broadband provider. Doing it this way means it heads off any counter offer of fixed wireless mobile from Spark. If I ring Spark first, then I lose the $200 fibre sign up bonus from Chorus.
I wonder if this 'Chorus card' offer is real evidence that 'Spark Fixed Mobile Broadband' and 'Spark/Vodaphone Mobile Broadband' is seen as a real threat to Chorus, particularly now that Mobile 5G is available in some centres? What I don't get though is that even mobile broadband uses fibre (i.e the Chorus network) once the signal gets to the cell towers. So Chorus is still involved even if they aren't getting paid by the end line customer. Or have I got that last bit wrong?
SNOOPY
Last edited by Snoopy; 21-02-2020 at 10:17 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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21-02-2020, 09:39 AM
#2594
Originally Posted by Snoopy
Snoopy raises issues, wireless V fibre internet.
SNOOPY
It depends on your use case Snoopy.
If all you require is internet for web browsing and email and are within range of A spark tower wireless internet is OK and may have a price advantage.
If you have a household of teenagers, like streaming media such as Netflix and want a cheap landline using voice over IP then fibre is the way to go.
No father can resist his nest of little starling chicks sceeching "fix the internet, fix the internet".
Boop boop de do
Marilyn
Diamonds are a girls best friend.
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21-02-2020, 10:29 AM
#2595
Originally Posted by Marilyn Munroe
It depends on your use case Snoopy.
If all you require is internet for web browsing and email and are within range of A spark tower wireless internet is OK and may have a price advantage.
If you have a household of teenagers, like streaming media such as Netflix and want a cheap landline using voice over IP then fibre is the way to go.
No father can resist his nest of little starling chicks sceeching "fix the internet, fix the internet".
Boop boop de do
Marilyn
I do have 2 up coming teenagers, that use enough bandwidth now with some of the games they play
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23-02-2020, 07:42 PM
#2596
Just checking my portfolio for anything that might overly suffer in the slowdown. What potential problems could Chorus encounter?
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23-02-2020, 08:25 PM
#2597
Originally Posted by ratkin
Just checking my portfolio for anything that might overly suffer in the slowdown. What potential problems could Chorus encounter?
Lol with a PE of 52 it should already be suffering by having at least $2 shaved off its current share price.
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23-02-2020, 09:13 PM
#2598
Originally Posted by couta1
Lol with a PE of 52 it should already be suffering by having at least $2 shaved off its current share price.
It is well positioned to bring that PE down quite quickly. Just wondering if the virus will throw any spanners in the works. Could the actual fibre rollout be hit? No idea where the installers get all their parts etc from, but China a likely source?
Last edited by ratkin; 23-02-2020 at 09:14 PM.
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23-02-2020, 09:29 PM
#2599
I use Spark wireless and have had no viruses.
Perhaps they are more likely to be spread on Chorus's copper wires.?
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24-02-2020, 09:59 AM
#2600
Chorus increases EBITDA guidance following strong halfFY20 half year result by the numbers
•Net profit after tax $31m (HY19: $30m)
• EBITDA $332m (HY19: $318m
• Operating revenue of $483m (HY19: $489m)
• Interim dividend of 10 cents per share
• EBITDA guidance range increased to $640 to $655 million
• 99,000 fibre installations since 30 June 2019
• 13% of fibre connections on 1 gigabit plans
Rollout of fibre coming to end, time to reap the benefits was the gist of the commentary. No mention of virus related concerns, and as they have increased guidance have to assume they are not expecting any.
Market seems happy with it, so far
Last edited by ratkin; 24-02-2020 at 10:16 AM.
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