Telecom ups ante in battle for broadband

Telecom has launched its first major advertising campaign for its network business, Chorus, as telcos and lines companies pitch for a slice of the Government's $1.5 billion ultra-fast broadband plan.

Television ads are voiced by actor Temuera Morrison and feature Chorus technicians driving around the countryside and working on the networks while conversing in techno-speak. Print ads will follow.

The ads come as the Government scrutinises confidential bids from Chorus, lines company Vector and 16 other organisations to build fibre networks across all or part of New Zealand's urban areas.

The fibre scheme promises to deliver speeds of 100 megabits per second to 75 per cent of the population.

Vector is also in the midst of a high-profile campaign promoting its bid to build a fibre network in Auckland as part of the Government plan.

Last week, Vodafone announced an alliance with Canadian fibre-grid operator Axia to create a single network that internet service providers could use to deliver broadband to customers.

Chorus came into existence two years ago following the Government-forced split of Telecom into network, wholesale and retail divisions.

Telecom head of communications and branding Melanie Marshall said that unlike the Vector campaign, which compares the present state of broadband to delivering water through a straw, Chorus aimed to raise awareness of the company rather than change perceptions.

She said the company wanted to explain the work done by the 1800 Chorus-branded vans.

The jargon-heavy speak of the technicians featured was a running gag but aimed to demonstrate staff and contractors' experience.

The ads would evolve during the campaign, planned to air until September to showcase network upgrade work done over that time, said Marshall.

Chorus is half-way through the programme of installing fibre to roadside cabinets operating as mini-exchanges aimed at boosting broadband speeds, also referred to as fibre-to-the-node.

"It seemed a good time to celebrate some of the successes we've achieved over the past couple of years," Marshall said.

But with Government plans to run a high-speed fibre broadband network to the doorstep of schools, hospitals, homes and businesses, Telecom faces having its investment overbuilt unless it can negotiate a compromise with the Government.

The Government has demanded any infrastructure partners in the billion-dollar network be unencumbered with a retail business.

Speaking at the company's third quarter financial briefing two weeks ago, Telecom chief executive Paul Reynolds said the company had already spent $249 million on operational separation - a model based on an "old copper world".

"We're all - government, industry players - planning our moves to a new fibre world," he said.

"It's simply unsustainable to continue to redesign the past at the same time as trying to build the future." By Helen Twose


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