Monday, December 23, 2013

Chorus assets are heading to the scrap heap

Like the ancient copper local network, the newly installed Chorus fibre network is put on notice by the fast changing  wireless technology.  Both fixed networks are heavily subsidised by the taxpayer, one is still being installed as you read and will be superceded about time the install is completed. 

Telecom only recently launched its 4G mobile network using the latest equipment from Huawei but the Chinese company is already working on its next generation of technology.

Huawei is helping to develop global standards for 5G with the hope of offering data speeds of 10gbit/sec, 10 times the best achieved so far by 4G.

This would make 5G comparable with fibre broadband and capable of delivering high definition and 3D movies to mobile phones.

Widespread deployment of 5G might be some five years away.  It would complement not displace fibre broadband.

Tui time, I predict wireless networks will replace the fixed networks within 5 years, rendering Chorus assets and the company worthless.

But no doubt, New Zealand taxpayers will be forced yet again to pay dearly over the next decade for both copper and fibre assets in a private company which has failed to adjust its business model to cater for changing technology.

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