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New Zealand: Inspired Networks November 9, 2006

Posted by Jasper in Uncategorized.

I received a mail yesterday from CA*net 4 which had excerpts from an e-mail from James Watts of Inspired Networks in Palmerston NZ. Inspired Networks has been working with contractors and city water people to throw in a fibre duct every time they open a trench. Some rather refreshing excerpts below.

Inspired Networks has been laying duct and/or fibre around our town for the last several years, we have done it in a variety of ways, the cheapest way is by providing kegs of beer to Christmas functions etc for contractors, and they keep me informed of where they are digging. They also often throw our 100mm duct into the trenches they dig at no or minimal charge (sub $10NZ/metre). Consequently we keep a stock of duct in each contractors yard that we can locally, and they just let us know what they have layed… Its also a sweetener to them for jobs where we will often pay them to dig an extra 10 or 20 metres off the end of their job to hook up to our closest duct, meaning they can make a bit more money while they have their diggers/trucks on site, and also meaning we get away with not paying things like traffic management fees and road closures etc, as they have already been done.

My latest initiative is I have our local council finally onboard (at the lowest levels anyway) and have done a deal with the city water planner, and he is charging me $10/metre to lay duct where ever they are laying watermains…

I must mention another of our current finance options, we have been talking to a lot of the people building subdivisions and the local monopoly Telco has fixed rates for putting copper into new subdivisions, a recent example is one about 40km out of town, they quoted $3500/section to provide service, and it’s a requirement for resource consent to have it. They used to get away with this due to no competition, so I made the suggestion we could do fibre with a phone service at $450/section, and they matched the cost. This saved the subdivider $3000 per section, and he agreed that in exchange for us helping him get the cost down that he paid us to put in our fibre also. So therefore instead of $3500/section he paid $450 to us and $450 to the monopoly provider, and all his houses have both services, a win for everybody.

Well there you have it, a few kegs of beer will get you far and monopolists always pay themselves too much.



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