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Boost for ISP market as Kiwi wholesaler targets "big three"

01 Jul 2014

The New Zealand telecommunications' sector has gone through a market shakeup since 2012 when Vodafone acquired Telstra Clear, and more recently with Call Plus acquiring Orcon.

This has left the sector with three large players effectively controlling approximately 90% of the telecommunications market, leaving 70 plus Internet Service Providers battling over the remaining 10%.

Next Generation Wholesale (NGW) planned from day one to offer a wholesale channel to allow small to medium sized providers to compete with the big three.

Co-founder Ben Simpson believes NGW will assist these smaller ISPs by freeing up their operating expenditure which can then be invested in marketing rather than infrastructure.

It also avoids the complexities of managing and maintaining carrier grade networks and the expense of employing associated staff.

"New Zealand consumers and businesses need more choice of providers who can deliver high quality product and enhanced customer service at similar prices to the big three,” Simpson says.

“When a wholesaler buys services from NGW there is enough margin to compete at the same prices the big three offer, therefore making it a viable long term offer.

“This allows the wholesalers room to grow market share and add value by being innovative around their service offering."

NGW is different, according to Simpson.

“Unlike current wholesalers, they do not sell to the end user or business customer directly,” he adds.

“They have been transparent from day one and have set out to help smaller VISPs get access to rates which historically would have been the domain of large volume wholesalers only.

“This is great news for these smaller players and is sure to cause a few ripples in the industry. Never before have these wholesale prices been advertised publicly online.”

Historically, wholesalers were required to sign ridged NDAs to get access to wholesale price information. Their network provides its wholesalers with a quality solution for establishing their own branded Internet Service offerings.

NGW has an extensive Nationwide network with POPs in 20 locations across the country.

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