Fry Up – A kiss on the hand may be quite continental

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Is The Clean a Dunedin or Christchurch band?
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A kiss on the hand may be quite continental...
There has been a lot of speculation since Marilyn Monroe died about her love life, her cause of death, her literary tastes but never anything about where she stood on telco matters. But it’s fair to say that she would likely have been a proponent of net neutrality . How can Fry Up make that bold claim?

In a roundabout way Vodafone head of corporate affairs Tom Chignell told us.

Actually, what Chignell said – at a very interesting Vodafone briefing this week in which its GMs laid out the company’s strategy for the next era in telco world – is that there are two schools of thought on how mobile network operators should frame their business cases in the future. He said there is an American school of thought and a European school of thought (he favours the latter).

“The American school of thought suggests it is a socialist republic of data and all bytes are equal,” Chignell says. “So they’ve come down in favour of the OTT players (that is Google, Facebook, Apple etc) camp and say you can’t discriminate between the types of use.”

“In Europe they have taken a different view. You can [differentiate] because there are different sources of revenue and we need future investment, therefore we need to give flexibility for networks to seek that cash from different sources. By the way if they do it in a way that customers don’t like then there are plenty of operators around, so just switch operators”.

Oh right, competition. Quite how this would be achieved if Chignell gets his way and Vodafone and only one other operator get to divide the very valuable 700MHz spectrum between them, is a question that really does need to be considered by the Ministry of Economic Development who will be conducting the upcoming spectrum auction.

Anyway, the whole US vs Europe thing, put Fry Up in mind of that line in the famous Marilyn Monroe song - “A kiss on the hand may be quite continental but diamonds are a girl’s best friend.” That’s because if New Zealand carriers do go down the European route they willl most likely seduce their subscribers with tarted up offers, managing data traffic flows so that those who pay a premium rate to access a popular social media site will get a better quality of a service. And those who don’t pay will get a lesser service.

So yeah, Monroe (who by virtue of her birthplace would have been in the US camp) would have got that and, were she alive today, she might well say: “It’s like that on-net Best Mates plan Vodafone introduced a few years ago which has helped them to get to monopoly status in the very lucrative Auckland market (68 percent share by the telco’s own admission). Plans like that skew the market and create a barrier to competition, which is the why in Singapore they outlawed them for a time.”

Vodafone declares its spectrum agenda
Singapore spectrum allocation complicated by neighbours
Telcos strategies to win back revenue
Spectrum auctions and the digital dividend


Dunedin sound debate rages
This week one of the most contentious debates ever to occur in the Fry Up offices has raged - whether The Clean is a Dunedin or a Christchurch band.

Here's a video of The Clean from 1982 shot by Andrew Shaw (remember Hey Hey It's Andy?) in Christchurch. Spot the band playing in the square by the Cathedral….

 

But was it enough to sway us? We've examined the evidence and we’ve made a call.

Dunedin IT scene - cultural attraction for the tech savvy


What’s that shuffling sound?
ICT Minister Steven Joyce searching through his papers for very important correspondence from the country’s highest paid chief executive that he apparently forgot about.

Muddying the waters of integrity

Curran: Joyce “lied” about Telecom separation correspondence


Nice product, shame about the press release
As part of Fry Up' s occasional series (which may or may not have begun today) on the strange, weird and desperate press releases that pass through our email inbox, we bring you this from the folks at Huawei and Telecom:
“Huawei and Telecom launch New Zealand’s cheapest Android smartphone”
Are you sure?

Kiwis pay 62 percent more for cheapest smartphone

And this from Sybase:
“Sybase Survey Finds Employees Willing To Give Up Free Coffee, Paid Parking, And Even A Vacation Day, For Choice Of Mobile Device And Access To Apps In The Workplace”
Seriously, that was in the email subject line.

Comments
Classic - ROCK ON FRY UP & Dunedin! It's always a good sign of a good Fry Up if there are some cracker comments... it tells me whether I should read the whole damned thing, or not.

Clean and Dunedin don't really go in the same sentence, unless your talking about a rock band!

Great series on Dunedin... now you just need to bring back the house of Pain - maybe Ian Taylor could create a 3d game where you buy your dozen speights cans for $2 a can (Like the 90's) and go and drink them in the party of the terraces... and wait for it -at a 2.30pm game... pub crawl from the brook into town:
1. The Kensignton
2. The Southern
3. Lonestar
4. The purple palace
5. The cellar club
6. Segway up to the strip club
7. Ports of call (The Soujtern Crosses bar)
8. Speights bar (recent addition)
9. Shooters (Cnr rattray and George/exchange)
10. Phoenix
11. Bogan bar before the octagon
12. The Ra bar...
TAXI home or
13. Champions of the world
14. Abalone
15. Foxies
16. The Bowler
17. The Cook
18. Gardies

Note the last 3 have been bought by the Otago Uni and are being converted to IT hubs.

Posted by Southern Man. at 9:02:13 on August 8, 2011

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Vodafail Geez Tom, get a sense of humour. Fryup is meant to be light hearted. I bet you get paid thousands of dollars a year to try and paint a `positive' picture of Vodafail. This is the REAL WORLD where people can say what they like about a company and if you don't agree with what Computerworld posts about you than tough bikkies. The media is not your PR agency!!
Posted by HB at 21:47:23 on August 5, 2011

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Net neutrality Sarah

Firstly, the net neutrality debate is not just about mobile networks - it is about fixed networks too.

The point you seem to have missed in your Fry Up is that networks have the ability to provide lots of different grades of service and if different customers are prepared to pay different prices for different grades then why is that such a bad thing? Some services need more consistent throughput than others. For example, customers watching streaming HD video care more about consistency of throughput than a customer using email. Its a bit like the airline analogy - business travellers care about how quickly they can get through check in and off the plane at the other end and are prepared to pay for it. But its the same plane that carries those whose primary goal is to minimise cost.

So the driver is different customer needs - and in the case of over the top players, these customer needs may well be represented by them rather than the customers directly. A customer who is very valuable to an over the top player in terms of advertising revenue may well value a higher grade underlying network service, for example.

And this issue has got nothing to do with the arguments you draw in around on-net and Vodafone's BestMate plan. What made BestMates so successful was innovation. Vodafone was the first to launch it in New Zealand. It took other operators a long time to replicate - indeed one operator still hasn't managed to produce it yet.

Innovation should be encouraged not disparaged. Customers love it!

As Marilyn Monroe once said: "If I'm a star, then the people made me a star."


Enjoy your weekend!

Tom Chignell
GM Corporate Affairs
Vodafone New Zealand
Posted by Tom Chignell at 16:41:10 on August 5, 2011

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Net neutrality Oh Tom - you missed the point. Fryup is a bit of fun. You remember fun?
Posted by Krusty the clown at 17:09:06 on August 5, 2011

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re: Net neutrality Tom, I may be missing the point here, but retail users of broadband will use a mixture of media content from the net - VOIP, gaming, video, html, p2p ...

So it's not that different customers having different needs, it's most customers will have varying needs. And if you start charging a premium to RECEIVE certain types of content, then monthly fixed priced broadband products will be a thing of the past.

It seems to me, if the broadband pipe/spectrum owners are going to charge a premium to anybody for certain media types over their pipes, they'll be charging the premium to those that SEND the data, not those that receive it.

An opportunity for spectrum owners to take a two bites of the cherry - charging both the providers and consumers of data ? No wonder Vodafone are promoting the "European" way.
Posted by Glenn at 17:02:47 on August 5, 2011

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re: Net neutrality Heh, i think you have reinforced my point about service providers contributing on behalf of their end user customers.

There is nothing wrong with multiple sources of revenue. Newspapers do it with advertising and subscriptions, as do pay tv channels. So do airlines who carry passengers and freight on the same planes.

By the way, I am not saying this situation has to emerge. I just don't think it is in consumers' best interests to legislate against it.

Apologies to those who only wan to have fun on Fry Up, but if it's at a single party's expense you would deny them right to contribute would you?

Tom Chignell
GM Corporte Affairs
Vodafone New Zealand
Posted by Tom Chignell at 21:11:18 on August 5, 2011

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Beatniks Never heard of Marilyn Monroe but the Clean rock!
Posted by Anonymous at 14:05:03 on August 5, 2011

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US vs Europe Inevitable, if we go down the European track smaller, less well endowed NZ content providers will be shafted.
Posted by DonChristie at 13:52:23 on August 5, 2011

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Miss M. Munro She would be 85 now and probably not very concerned with such things.

Posted by Elderlybloke at 13:50:33 on August 5, 2011

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