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

When are HSNS tail extensions going to be a thing?

By Brendan Ritchie
Tue 26 Sep 2017
FYI, this story is more than a year old

Chorus HSNS (high speed network services) pricing makes no sense and makes the product harder to buy.

I recently wrote about UFB tail extensions, following on from that I want to explain how Chorus makes a higher value service harder to buy.

HSNS is the 100% committed (speeds are guaranteed to the ISP handover) service that was around before UFB and is now also sometimes referred to as BS4.

Chorus should be doing all they can to get RSPs (retail service providers) to buy HSNS, the revenue gained per sales in that category is far higher than UFB, so why haven’t they introduced cost effective tail extensions for HSNS Lite fibre and HSNS Premium?

A single 100Mbps HSNS service generates the equivalent revenue of eight UFB bs2a 100/100 services, yet Chorus has focused on making the less profitable, albeit mass market, products available.

HSNS is not of interest to everyone, but where diversity or guaranteed speeds are required, or where UFB has not/will not get to, it is still very much a required part of any ISPs arsenal of products.

Next to non-regulated revenue from services such as CRT (Chorus’ inter metro backhaul service which 2degrees recently moved to for national backhaul) HSNS represents one of the most profitable regulated services they have.

Let’s use Greymouth as an example to see how crazy the disparity is between Chorus’ approach to the two services.

Taking a 100Mbps BS2a UFB service from Greymouth back to Christchurch generates an additional charge to an RSP of $2.89 p/month.

Doing the same with a 100Mbps HSNS premium service costs an additional $6,000 p/month.

We could assume that the additional cost is because the HSNS service is committed, with a 1:1 ratio, but even so, Chorus’ uncontended CRT product costs $2,697 for 1000Mbps between Greymouth and Christchurch.

That’s 10 x the speed of the HSNS 100Mbps tail extensions, and less than half the price.

By making HSNS tail extensions cheaper Chorus could drive uptake of a high value product and be seen to have a coherent and logical pricing formula across their service portfolio.

The only reason I can think of for Chorus to leave the tail extensions at ridiculously high price points would be to drive ISPs to buy co-lo space at regional exchanges and their regional backhaul service (CRT).

But this doesn’t stack up.

There isn’t big money for them in co-lo space and tail extensions are a nice pathway for ISPs looking to establish scale in a region as a precursor to building a point of presence there and then buying CRT.

Chorus’ HSNS pricing doesn’t appear to make any sense.

Brendan Ritchie (@bcarmody on Twitter) is the CEO for Lightwire Business (@Lightwirebus on Twitter) which provides internet, IP voice and WAN services across New Zealand and Australia.

Related stories
Top stories
Story image
Digital Transformation
SAP partners with New Zealand Rugby for digital transformation
The multi-year partnership will see SAP advance NZR with its organisational operations, team performance, fan experience and sustainability goals.
Story image
Microsoft
Microsoft NZ and TupuToa to boost diversity in cybersecurity sector
Microsoft NZ has teamed up with TupuToa to co-develop a cyber security employment programme specifically aimed at creating more diversity in Aotearoa's cybersecurity sector.
Story image
Customer experience
The importance of service level management to customer experience
Staffing shortages have impacted site reliability engineers in particular since they are under extreme pressure to ensure that digital assets perform at optimum levels 24/7.
Story image
DevOps
Deloitte expands cloud observability practice with Dynatrace
Deloitte is expanding its cloud observability practice, including DevOps principles, AI/ML, cloud complexity management and software engineering.
Story image
Data Protection
Information management capabilities to meet privacy requirements
Organisations with customers or operations across more than one country face a spate of new and proposed privacy and data protection laws.
Story image
Training
Infosec unveils role-guided cybersecurity training roadmaps
Infosec Skills Roles maps hands-on training and certifications to the 12 most in-demand cybersecurity roles to maximise training efficiency.
Story image
Malware
Fortinet introduces self-learning AI in latest offering
Fortinet is introducing self-learning AI capabilities in its new network detection and response offering, FortiNDR.
Story image
Contact Centre
Leveraging technology in contact centres to reduce attrition rates
Many organisations worldwide have accelerated DX to better respond to changing market drivers and business environments after the disruption of the pandemic.
Story image
Cybercrime
The ups and downs and runarounds of catching cybercriminals in NZ
We're becoming more and more aware of cybercrimes but how many criminals actually get caught? The New Zealand police explain why the answer is complicated.
Story image
Symbio
Symbio consolidates TNZI business to support APAC expansion
Symbio has recently announced the consolidation of its international business (TNZI) under the Symbio brand to support its Asia Pacific expansion strategy.
Story image
Infosys
Consumer relationships with digital services continues to change
Two years of pandemic-induced reliance on technology for work has altered our relationship with digital apps and services, new research has found.
Story image
GapMaps
GapMaps Live to improve brand decisions on physical locations
GapMaps has released its latest service GapMaps Live, giving more insights and features to help brands make better decisions about physical locations.
Story image
Microsoft
Elevation of Privilege the top 2021 Microsoft vulnerability
BeyondTrust has released its 2022 Microsoft Vulnerabilities Report, finding that Elevation of Privilege is the top vulnerability category for the second consecutive year.
Story image
Chorus
Chorus and Nokia launches first trial of 25G PON broadband
Chorus and Nokia have announced the successful demonstration of 25 gigabit per second fibre (Gbps) broadband technology at the Chorus Fibre Lab in Auckland. 
Story image
Digital Signage
MAXHUB's Digital Signage range to bolster boardroom productivity
The new MAXHUB Digital Signage technology is purpose-built to make every kind of team meeting more effective.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Red Sift
Entrust expands strategic partnership with Red Sift
Entrust has expanded its strategic partnership with Red Sift to make it easier for businesses to adopt Brand Indicators for Message Identification (BIMI) standards for email identification and security.
Story image
APAC
Top data and tech challenges for APAC banks - report
InterSystems’ new report finds that 87% of A/NZ banks experience frustrations and concerns in using their data to drive decision-making.
Story image
Hybrid Cloud
Barracuda expands cloud-native SASE platform
"The expansion of Barracuda's cloud-native SASE platform for hybrid deployment models and IIoT environments solves a number of challenges."
Story image
Transport
Third-party automotive apps bear significant privacy risks
Mobile applications for connected cars provide various features to make life easier for motorists, but they can also be a source of risk.
Story image
NVIDIA
NVIDIA announces a spate of new innovations at Computex 2022
NVIDIA has announced its latest innovations in data center, robotics, content creation, and gaming in a virtual keynote address on the opening day of Computex 2022 in Taipei.
Story image
Informatica
Informatica, Oracle enter strategic global cloud partnership
Oracle named Informatica as a preferred partner for enterprise cloud data integration and data governance for data warehouse and lakehouse solutions on OCI. 
Story image
Cybersecurity
Accenture - a collective security approach a driving factor for cyber resilience
With the approaching Davos World Economic Forum upon us, it is even more imperative to discuss the impact of cybersecurity on business operations leading into the future.
Story image
Multi Cloud
Red Hat updates dev tools, empowers use of hybrid and multicloud
Red Hat has unveiled updates across its portfolio of developer tools, designed to help organisations build and deliver applications faster.
Story image
Ponemon Institute
Email revealed to be riskiest channel for data loss
More than half (60%) of organisations experienced data loss or exfiltration caused by an employee mistake on email in the last 12 months.
Story image
MEC
MEC spending for private cellular networks to reach $5.8b
A new ABI Research report finds the revenue for Multi Access Edge Compute (MEC) deployments for private cellular networks will reach USD$5.8 billion by 2030.
Story image
Microsoft
Microsoft NZ announces initiative for local SaaS businesses
Microsoft has announced a new initiative, bringing together all of its tools to help local SaaS businesses build, sell and grow their companies at scale.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Alteryx
Alteryx releases updates, empowers data insights for enterprise
Alteryx has released new advancements designed to aid enterprises with cloud analytics, democratise insights and ensure data governance.
Story image
Sustainability
Aligned Data Centers increases sustainability-linked loan
Aligned Data Centers has increased its sustainability-linked loan from $375 million to $1.75 billion to speed up the next phase of its strategic growth.
Story image
Kubernetes
Sysdig unveils new Kubernetes troubleshooting and cloud innovations
Sysdig has introduced two new innovations that look to help bolster cloud services and simplify Kubernetes troubleshooting.
Story image
Microsoft
Microsoft previews Power Platform website design offering
Microsoft has announced the preview of Power Pages, the fifth product in its Power Platform family, designed for low-code makers and professional developers.
Story image
Identity and Access Management
The post-pandemic workforce requires secure IAM capabilities
HID Global discusses what identity and access management means for organisations in today's convoluted digital world.
Story image
Surveillance
i-PRO releases smallest AI-based surveillance camera on the market
The new i-PRO mini network camera is now available, with a pocket-sized form factor and full AI analytics functionality.
Story image
Cyber attacks
Devastating cyber attacks expected to hit energy sector
Energy executives anticipate life, property, and environment-compromising cyber attacks on the sector within the next two years.
Story image
Ransomware
CERT NZ releases first Cyber Security Insights for 2022
CERT NZ has released Quarter One: Cyber Security Insights 2022, which offers an overview of reports about cybersecurity incidents affecting New Zealanders.
Story image
BYOD / Bring Your Own Device
How zero trust can lead the battle against ransomware
SecOps teams champion a zero trust strategy to support the fight against the escalating risk of cybercrime and help monitor threat actors across a network.
Story image
Rackspace
Skills shortages hold orgs back from capitalising on cloud 2.0
Organisations are becoming more comfortable with sophisticated 'cloud 2.0' technologies, even as they confront difficulties in hiring and retaining IT talent.
Story image
Digital Transformation
Digital transformation increasing business complexities
A new survey suggests businesses must re-examine their digital transformation approach to better help employees adapt to change.
Darktrace
Threat actors are exploiting weaknesses in interconnected IT/OT ecosystems. Darktrace illuminates your entire business and takes targeted action to stop emerging attacks.
Link image
Story image
Silver Peak
The path to an adaptive, modern network
Managing and securing the network looks different than it did just two years ago—especially given that most of these networks are made up of multi-generations of infrastructure stitched together over time.
Story image
Artificial Intelligence
Gartner reveals top three tech trends for banks this year
Gartner says generative artificial intelligence, autonomic systems and privacy-enhancing computation are gaining traction in banking and investment services.
Story image
Cybersecurity
What every CISO must answer to enable a best-in-class security operations program
It has been widely reported recently that South Australian government employees have been the victims of a cyberattack.