IT Brief New Zealand logo
Technology news for New Zealand's largest enterprises
Story image

Does Chorus have a weak UFB channel strategy?

By Brendan Ritchie
Mon 18 May 2015
FYI, this story is more than a year old

It’s not that Chorus has a poor channel partner strategy, it’s more that it doesn’t appear to exist.

Quick background. Chorus can’t sell services directly to end users and instead, it must sell wholesale services to retail service providers (RSPs) who in turn sell retail services to end users. This model is locked in under the terms of the agreement Chorus struck with Crown Fibre. There is also an equivalency policy, which means Chorus has to be very careful not to favour any RSP over another.

Chorus are putting millions of their own money, and tax payer dollars, into the ground. They need to get a return on this investment, as do the Government, and the only way they can do that is by enabling their channel partners, namely the ISP’s of New Zealand, to quickly and cost effectively sell UFB services. The recently completed UFB build in Taupo cost approximately $20m, and currently only 4% of potential end users in that region are using the service. Nationally, the average is 13.8%.

DTS installed the very first UFB connection Taupo in 2012, and recently hosted Chorus and their invited guests at Base Backpackers (a DTS client using UFB) in Taupo to officially announce the completion of the UFB build in that city. Chorus spoke, the mayor spoke, and the local MP spoke. Not one of them mentioned DTS, or any other ISP for that matter. Surprisingly, in a region with such low utilisation, not one person made mention of how they would now set about getting people to use the service available to them.

The matter of poor etiquette certainly annoyed me as DTS had made an effort to set the event up and for me to attend, to have that time and cost acknowledged would have been nice. While it seems a small point, I do believe it shows how completely oblivious Chorus is to the efforts of its channel partners, who it should be noted, are also Chorus’s direct customers. DTS now connects with Chorus in 14 regions and ISP’s like us are a key component in connecting business in NZ to Chorus fibre, but they are not engaging with us on the most basic of levels. I am sure other ISP’s would express a similar sentiment.

Taupo has 9 ISPs connected to Chorus (compared to a list of approximately 82 ISPs that operate on some level in New Zealand). What is Chorus doing to increase that number? What are they doing locally to overcome concerns about their lengthy and uncertain install process and their support being considered inferior to that provided by Unison (a local fibre provider that does a great job for a similar cost)? What are they doing locally to educate potential end users about the service options now available to them and the names of connected ISPs in that region? A basic postcard is sent to end users, but it is not tailored to individual towns, and does not mention ISPs connected in a given region (instead asking the end user to speak to their broadband provider, who may not even offer UFB in that region), and no service information is given.

Information on when these weak postcards are sent to clients is not proactively reported to ISP’s.

I raised these points with Chorus at the event, and was told the event was not being held to address those questions; it was instead about celebrating the completion of the build. The build is great – well done to Chorus on finishing it – but it means nothing if you don’t have an effective go-to market strategy. What more meaningful way to celebrate the completion of a new service platform than looking ahead at propagating that service?

Chorus has another event soon, this time to be held in Timaru to celebrate the completion of the fibre build there. Another ISP’s client will host that event. In their current form, these events are a waste of time and money. Poorly conceived, and narrowly focused on self-congratulatory speeches by local stakeholders, Chorus would be better off hosting events where local business groups are invited to education sessions hosted by people who understand the services and related price points.

Chorus need to get practical and stop wasting time. Money is in the ground, they can do a much better job at getting a return from it. And for what it is worth, local politicians would do well to better understand the role ISP’s play and look to work closer with us as well.

Brendan Ritchie is the CEO of DTS, a business focused ISP that has been supplying clients across Australia and New Zealand with internet, voice and tailored WAN solutions since 2002. Tweet him on @bcarmody.

Related stories
Top stories
Story image
High level of Customer Identity & Access Management adoption
The study from Okta revealed that the pandemic has either accelerated or highlighted the need for digital-first strategies.
Story image
Application Performance Monitoring / APM
New Relic integrates offering with Atlassian’s Jira Software
New Relic has integrated errors inbox with Jira Software to allow developers to easily access and set up complete stack error tracking and software performance monitoring from within the tool.
Story image
Privileged Access Management / PAM
The importance of stopping identity sprawl for cybersecurity
The 2021 Data Breach Investigations Report (DBIR) shows that 61% of all breaches involve malicious actors gaining unauthorised, privileged access to data by using a compromised credential. Unfortunately, it is often too late when the misuse of a credential is detected.
Story image
Ingram Micro
Ingram Micro NZ sees $74 million revenue growth in 2021
Ingram Micro New Zealand's latest financial report reveals that its revenue from contracts with customers increased by almost $74 million in 2021.
Story image
Data Protection
VMware introduces advanced workload protection for AWS
VMware Carbon Black Workload for AWS delivers comprehensive visibility and security across on-premises and cloud environments for AWS customers.
Story image
AvePoint rebrands SaaS learning product to MaivenPoint
"Our mission with MaivenPoint is to make your learning experience limitless and inspire everyone to achieve their aspirations."
Story image
DCI Data Centers breaks ground on AKL02 center
DCI Data Centers has commenced construction on Auckland's largest data center.
Story image
Exclusive: Inde provides innovative solutions across the tech sector
Inde likes to call its approach the 'power of the collective', which essentially means that if a client approaches the company with a problem, they'll get the team's collective insight to help drive the best outcome.
Story image
New Zealand
2degrees announces appointments to newly established board
2degrees has announced Liz Coutts as the board chair, while Russell Stanners and Kathy Meads join her as directors.
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Enterprise Resource Planning / ERP
Why the right ERP (and partner) is crucial to an innovative and successful business
Enterprise Resource Planning (ERP) is a foundational step to ensuring a robust business model; here's why choosing the right one could be vital to ensuring long-term success and innovative results.
Story image
Pure Storage
Pure Storage named leader in GigaOm report for Kubernetes storage
Pure Storage named the leader for the third consecutive year by GigaOm Radar Report for enterprise Kubernetes storage.
Story image
Artificial Intelligence
Exclusive: NZ-based DEFEND offers global cyber protection
DEFEND supports customers in 66 countries across the globe with a relentless focus on ensuring that every dollar spent on security provides a meaningful return on investment and reduces cyber risk.
Story image
Why enhancing bot protection for web and API endpoints matters
The trouble with bots is that they aren’t all bad. Unfortunately, this can make it challenging to detect malicious bots that find their way into your system and threaten your business.
Story image
10 Minute IT Jams
Video: 10 Minute IT Jams - An update from Heidrick & Struggles
Graham Kittle joins us today to discuss how the company is helping organisations bring about change within their business.
Story image
Document Management
TrustRadius gives M-Files two document management awards
TrustRadius has recognised M-Files with both a 2022 Best Feature Set and a 2022 Best Relationship award in document management.
Story image
Dark web
Beware the darkverse and its cyber-physical threats
A darkverse of criminality hidden from law enforcement could quickly evolve to fuel a new industry of metaverse-related cybercrime.
Story image
Datacom research explores reality of zero trust in A/NZ
Zero trust is fast emerging as global best practice in cybersecurity and local leaders are on board, with 83% considering it essential to security.
Story image
Google Cloud
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Workplace design a crucial factor for better employee experience - report
The key to a successful workplace could be its design, according to research from Ecosystm and Neat.
Story image
Digital Transformation
Adobe and FC Bayern collaborate on a multi-year partnership
Adobe is embarking on a multi-year partnership with FC Bayern, using its enterprise solutions to carry out the club’s digital transformation.
Story image
SnapLogic teams up with meetmagic for charity and children
SnapLogic has announced its partnership with meetmagic, an online Australian platform that combines business and philanthropy.
AWS Marketplace
See how managed security services (MSS) have evolved to Managed Detection and Response (MDR) and Extended Detection and Response (XDR). Learn how these new holistic solutions can simplify security management and improve your threat detection and response.
Link image
Story image
Data analytics
Data analytics a struggle for A/NZ healthcare organisations
A study by InterSystems has found that most Australian and New Zealand healthcare organisations struggle to use data analytics to support their business objectives.
Story image
Keysight Technologies and Nokia’s public test of 800GE success
Keysight and Nokia have successfully demonstrated the first public 800GE test, validating the readiness of next-generation optics for service providers and network operators.
Story image
Tech job moves
Tech job moves - Cohesity, Equinix, IDC, Proofpoint & Xero
We round up all job appointments from July 29 - August 5, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Spectralink DECT devices now integrated with Microsoft Teams SIP Gateway
Spectralink DECT devices are now integrated with Microsoft Teams SIP Gateway to help create better results for business-critical frontline workers.
Story image
LG Electronics
LG Electronics’ revenue in NZ grows by 57% in FY 2021
The New Zealand branch of LG Electronics Australia's total revenue shot up by nearly NZD $45 million reaching a total of $123.7 million for FY 2021.
AWS Marketplace
Learn how security orchestration, automation, and response (SOAR) enhances your security strategy.
Link image
Story image
Financial results
Jade Software’s plan to get back to surplus in 2022
Jade Software has released its latest financial report, revealing that the company has kept its loss low from $567,000 in FY 2020 to just $153,000 in FY 2021.
Story image
Why the Metaverse could be the key to enhancing the healthcare sector
The experts at Accenture understand that the programmable world is about building the next version of the physical world in healthcare, understanding complex layers in order to fully utilise technology to its maximum effect.
Story image
Palo Alto Networks responds to rise in threats with MDR service
Unit 42 Managed Detection and Response is a new service that can offer continuous 24/7 threat detection, investigation and response.
Story image
Gartner Magic Quadrant
Gartner positions Commvault as Leader in 2022 Magic Quadrant
Gartner has named Commvault a Leader in its 2022 Gartner Magic Quadrant for Enterprise Backup and Recovery Software Solutions report.
Story image
Avast One extends protection with Online Safety Score
Avast One has extended its cross-platform support by adding its Online Safety Score feature to both the Mac and iOS platforms of Avast One.
Story image
Open source
Flashpoint acquires Echosec Systems, elevates OSINT capabilities
Flashpoint has acquired Echosec Systems, a provider of open-source intelligence and publicly available information.
Story image
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
Automation to take over 63 million jobs in APAC by 2040 - report
Forrester forecasts that working populations in the five largest economies in APAC are more at risk of physical robot automation than in Europe and North America.
Story image
NZ program recovers and recycles more than 177 tonnes of e-waste
The TechCollect NZ pilot program says its milestone of recovering and recycling more than 177 tonnes of ICT e-waste recognises the efforts of many.
Story image
Talend announces support for Amazon Redshift Serverless
Talend has announced its support for Amazon Redshift Serverless, with the company saying the integration reinforces its commitment and leadership in supporting businesses.
Story image
Claroty launches new cloud-based industrial cybersecurity platform
The company says Claroty xDome is the industry's first solution to deliver the ease and scalability of SaaS without compromising on visibility, protection, and monitoring controls.
Story image
Red Hat
Red Hat announces 2022 awards winners for A/NZ region
Red Hat recently acknowledged Australia and New Zealand partners with its annual awards, highlighting partners across various categories.