Re: [nznog] New Trans-Tasman submarine cable

On 20/02/2013, at 9:40 AM, Peter Lambrechtsen wrote:

So wouldn't a larger population buy more data due to size and thus get a better discount? Isn't that how typical economics works. Or am I missing something?

So wasn't that my main argument about population or lack thereof?

I was answering your question about how our prices are higher despite the apparent SCCN pricing equality by explaining that the pricing quality is actually illusory. What you are missing is that there are two sides to typical economics - supply and demand. You can change a market through the supply side as well as the demand. In other words, we could discuss population forever but this isn't a deterministic system where we only ever get pricing in proportion to our population. With some vision and determination from the right people we could have two or three AU/US cables and benefit from greatly reduced pricing as a result of the competition because competition and pricing are deterministic. And yes they would all be profitable. Incumbents always argue that there is not enough money to go around and so new entrants will never make a profit - it's all part of the game. Jay

----- Reply message ----- From: "Jay Daley" To: "Peter Lambrechtsen" Cc: "nznog(a)list.waikato.ac.nz" Subject: [nznog] New Trans-Tasman submarine cable Date: Wed, Feb 20, 2013 9:31 am

On 20/02/2013, at 7:16 AM, Peter Lambrechtsen wrote:

...

How are prices high when it costs the same to land data on SCCN NZ-US as it does AU-US and there is 3 cables going into AU?

List prices are the same but the unlisted discounts are significant and they favour the stronger buyers. AU buyers are generally much stronger because they buy more bandwidth and they can shop around between cables for prices.

Jay

...

NZ is a small population with a low wage economy spread across a very mountainous geography that the vast majority of people only use less than 30gb of data....

Fix those issues and we will all have cheaper internet.

Sent from my HTC Wildfire S on Telecom's XT mobile network.

----- Reply message ----- From: "Chris Hodgetts" To: "nznog(a)list.waikato.ac.nz" Subject: [nznog] New Trans-Tasman submarine cable Date: Tue, Feb 19, 2013 11:15 pm

Yes - more cables does equal good...

However, given the three Telco's involved... does it still mean high prices?

On Tue, 19 Feb 2013 00:32:43 +0000, Christian Nielsen wrote:

...

More Cables = Good.

This is a pretty good site. Still shows Tasman-2. http://submarinecablemap.com/

Christian

-----Original Message----- From: nznog-bounces(a)list.waikato.ac.nz [mailto:nznog-bounces(a)list.waikato.ac.nz] On Behalf Of Kris Price Sent: Monday, February 18, 2013 4:29 PM To: nznog(a)list.waikato.ac.nz Subject: [nznog] New Trans-Tasman submarine cable

Oh, looky, a new cable:

http://www.telecom-media.co.nz/releases_detail.asp?id=3880&page=index

I'm curious about something though, maybe someone on the list can share a bit of history. Is Tasman-2 still active in some capacity?

I had always assumed it was shutdown after southern cross was built, but it's still shown often on cable maps such as the one in that press release:

http://twitpic.com/c4wu2k

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-- Jay Daley Chief Executive .nz Registry Services (New Zealand Domain Name Registry Limited) desk: +64 4 931 6977 mobile: +64 21 678840 linkedin: www.linkedin.com/in/jaydaley