Championing better broadband for New Zealand 2018 / ISSUE 7

The challenger Susie Stone has made a career of getting things done in smaller, more nimble telcos

TRUSTPOWER SUPER SHARP IMAGES BEYOND DUMB PIPES BROUGHT TO YOU BY Coming at broadband from 4K is a TV revolution How service a different angle providers add value Contents 2018 / ISSUE 7

9 24 4K TV Street art Images emblazoned on blades Paul Walsh made a career from of grass and much more – a painting curb-side cabinets revolution in television is coming 26 Connected home 12 There’s more to residential broad- band than Netflix and Xbox Live SPARK TALKS RUGBY WORLD CUP RIGHTS 28 Some of your questions answered 14 Trustpower New Zealand’s fourth largest broadband company comes from the energy sector. Chief executive Vince Hawksworth talks about how Trustpower became a major broadband brand

18 Adding value Service providers need to do more 28 than sell dumb pipes, we look at how DTS and Megatel add value SMART SPEAKERS 22 Voice-activated artificial Network services intelligence has arrived Napier-based Now installs 30 network-in-a-cloud services for Internet safety Hawkes Bay councils Abusive online behaviour is wide- spread, how are we tackling it? COVER STORY Vocus Communications GM Susie Stone talks about life at the sharp end of the telecommunications 33 business6 where challenging the bigger players is a matter of survival RANT Michael Wigley REGULARS on how Rugby World Cup Rights 1 set the scene for Editorial future battles Tough competition means service providers must innovate to thrive 2 In Brief Scammers, fibre studies 5 and TV bundles

thedownload.co.nz The Download | Editorial 1

Editor Bill Bennett Chorus Editorial Consultants Ian Bonnar, Steve Pettigrew, Holly Cushen Contributors Rob O’Neill, Scott Bartley, Heather Wright, Hadyn Green, Johanna Egar, Holly Cushen, RSPs look Michael Wigley Senior Account Director LauraGrace McFarland Senior Designer Julian Pettitt beyond Account Executive Paige Fleming Publisher Ben Fahy broadband On the cover Photography by Robin Hodgkinson, art direction by LauraGrace McFarland, design by Julian Pettitt

FROM A CUSTOMER point of view, New In a nutshell, the market is growing, but tough Zealand’s broadband has never been better. competition means there’s not a lot of profit. It’s faster, more reliable and less expensive than That’s because there are 90-odd companies Published by ICG PO Box 77027, Mt Albert ever before. Unmetered broadband running at all chasing the same revenue pool. Broadband Auckland 1350, New Zealand near gigabit speeds costs less than we paid for has become, for the most part, a commoditised www.icg.co.nz slow, capped Jetstream plans in 1999. Every market. Some, not all, RSPs act as if price is their month New Zealand data traffic peaks at a new only competitive option. high. We are consuming more and more data. When they do this, they then attempt to repair The Download is championed by This is the good news margins by lowering Chorus PO Box 632, Wellington 6140 in the March 2018 IDC operational costs. That www.chorus.co.nz report on the state of the can mean reducing New Zealand broadband customer service. If they The contents of The Download "Heavy price-based are protected by copyright. Please market. Spark sponsored competition is get this wrong, they're in a feel free to use the information the report. IDC says vicious downward cycle. It in this issue of The Download, with attribution to The Download Ultra-fast Broadband devaluing the ability can be brutal. by Chorus New Zealand Limited. and the Rural Broadband to monetise data" There are other ways to Opinions expressed in The Download Initiative deliver "world make broadband pay. In are not necessarily those of the publisher or the editor. Information leading broadband International Data Corporation this issue of The Download contained in The Download is infrastructure”. It MARCH 2018 REPORT we talk to smaller retail correct at the time of printing and while all due care and diligence says the New Zealand service providers who has been taken in the preparation telecommunications market is in a state of have found ways to add value. of this magazine, the publisher is revival from the consumer’s perspective and The biggest players, Spark and Vodafone, use not responsible for any mistakes, omissions, typographical errors or “this opens many new opportunities for the streaming video to win and keep customers. changes to product and service industry and for New Zealand Inc”. The added value justifies better margins. Vocus descriptions over time. There are other positives, but the rest of the added electricity to its product mix. There, the IDC report is mainly downbeat. At times it is value lies in getting more from the customer gloomy. It turns out that what’s great for the database and billing system. Trustpower comes customer, isn’t good for telcos and internet at the same strategy from the opposite starting service providers. At least not all telcos. point. Broadband helps it keep customers. IDC says: “In the fixed retail market, rising input Smaller RSPs, like Now, in Hawkes Bay, and Connect with us Facebook.com/ChorusNZ costs and ease of entry into the broadband market DTS offer managed services. While Megatel Twitter/ChorusNZ puts at risk the fine balance between regulatory offers television and power. For these companies, Chorus NZ Limited on LinkedIn influence and having the space and room for broadband is the starting point, not the end game. players to thrive. Heavy price-based competition is www.thedownload.co.nz devaluing the ability to monetise data.” Bill Bennett

2018 / Issue 7 2

In brief

NO SALE FOR VOCUS’ NZ BUSINESS Vocus has failed to find a buyer willing to that had, at the time, recently acquired pay the asking price for its New Zealand CallPlus, Slingshot, Orcon and Flip. business. The company operates a number Vocus set itself a tight sale deadline. of brands here: CallPlus, Slingshot, Orcon When the sale was announced last and Flip are the company’s main telco October, Vocus said it wanted the deal to and broadband assets. There is also the be completed by June 2018. network business formerly known as FX Given that some of the most likely Networks, as well as data centres, 2talk, a buyers would face lengthy regulatory voice-over-IP service provider and Switch, approval times, that reduced the number Telcos join forces an energy retailer. of possible candidates. Spark publicly to fight scammers Unofficially, the company was said to expressed an interest, but was stymied be looking for A$500 million. It needs this by the need for approval. There was little Spark, Vodafone, 2degrees and the New to pay off the cost of acquisitions made chance of the company getting clearance Zealand Telecommunications Forum during its rapid expansion. The company in time for Vocus' deadline. (TCF) now swap information on phone has debts of more than A$1 billion. Vocus Other potential buyers identified scammers. In April, the TCF released a says it has now reached an agreement with included Tauranga-based Trustpower draft code that should help carriers identify its lenders to extend its existing debt. and 2degrees. scam calls to mobiles and landlines, and The New Zealand businesses were then take action. all picked up during this expansion. Vodafone also off the block: In April, The TCF’s CEO, Geoff Thorn, says: Most were acquired in 2015, when Vocus Vodafone pulled back on plans to float its “The Scam Calling Prevention Code merged with M2, a rival Australian telco New Zealand business. drafted by the TCF reinforces and standardises the processes already in place, to help the industry react more quickly to any incidence of fraud reported by the public, and block calls from numbers used by scammers. The draft code also provides for sharing information with third parties where it is appropriate.” The TCF developed the code in collaboration with 2degrees, Spark, Symbio Networks, TNZI (formerly Telecom New Zealand International), Vocus and Vodafone. It aims to have a consistent approach towards identifying, verifying and blocking scam calls. The idea is that this will cut the number of scam calls consumers get while not interfering with most legitimate calls. Thorn says scammers are becoming more sophisticated. “Often they have access to Hawaiki cable lands in American Samoa personal information obtained through The Hawaiki Submarine Cable has landed a spur from its trans-Pacific submarine cable third-party sources and may use advanced in American Samoa. The cable, which runs from Australia’s east coast to Oregon in the systems to make it appear as though they US, via New Zealand, has been designed to include branching units so Pacific Island are calling from a genuine New Zealand states can connect to the internet. There are also links for New Caledonia, Fiji and phone number. The telco industry can only Tonga. American Samoa is the first to connect to the network. do so much to monitor what phone services In May, the company announced the last spur of its network was complete and that are being used for,” he says. the system was on schedule to begin operating in June.

thedownload.co.nz The Download | In brief 3

Vodafone to bundle basic TV service Vodafone customers with fibre or HFC plans will get the company’s new ‘TV Intro’ product as part of their package. Vodafone TV Intro is a cut-down version of the company’s wider streaming service. It offers 18 free-to-air channels. TV Intro will include on-demand apps from local broadcasters such as ThreeNow, TVNZ On Demand and WatchMe. Vodafone says customers will be able to switch between viewing on their television, tablet or phone. Vodafone also announced prices for its television products. The Starter package adds $25 to the price of the basic broadband plan, while the Sport and Entertainment packages each cost $55 a month more than the basic broadband plan. The Premium package includes both Sport and Entertainment and costs $95 more than the basic broadband package. The move can be seen as a response to Spark offering its Lightbox streaming unlimited broadband contract. The deal contract deal will get an extra six months of television service to its broadband has a nominal value of $180 a year but is in Netflix at no extra cost. customers. The difference is that Vodafone line with the price premium the company Spark has also launched Lightbox Movies TV Intro also serves as a lure to the charges compared with rival internet and now offers a Premium version. The on- company’s more expensive plans. service providers. demand, pay-per-view movie service is open Meanwhile, Spark has upgraded In March, Spark renewed this offer and to all online users. The Lightbox Premium Lightbox and moved closer to Netflix. A added six months of no-cost Netflix for service lets users download movies to play year ago, Spark offered one year’s Netflix customers signing a one-year contract. on their mobile devices. It means higher at no cost for customers signing a two-year Customers already signed to the two-year quality on low bandwidth connections.

IDC charts telecom sector’s 2DEGREES CLOSES profitless growth 2G NETWORK IDC’s State of New Zealand Broadband While competition means good times March saw the last 2G cellular call on report says that although the market for customers, costs are rising and the 2degrees network. The company is growing, telcos struggle to make a margins are falling. IDC says many in the closed the service and intends to profit. The report questions the sector’s telecommunications industry question re-use the freed-up bandwidth to sustainability, then it goes on to say New whether retail broadband can be profitable bolster its 4G network. Zealand is a world leader in connectivity. on its own. The report says: “The UFB At the time of the switch-off, the New Zealand’s total telecommunications initiative has commoditised fibre in New company still had a few thousand users on 2G, although, it says, many revenue increased 1.1 percent in 2017. It Zealand. Consumer fibre plan prices have of these would have been back-up grew from $5.36 billion to $5.42 billion. plummeted from averaging over NZ$200 phones. The 2G handsets will no IDC warns: “This growth disguises the per month in 2013 to around NZ$85 per longer work. true story of a market that is displaying month as at February 2018.” Vodafone still has a 2G network. extreme price pressure and competition IDC says companies will find it easier to The company says it will continue in both fixed and mobile. ARPUs (average get more customers through acquisition running it for the foreseeable future. revenue per user) are either flat or declining than to continue offering deals in a Spark never had a 2G network; in both broadband and mobile. In the cut-throat market. It also says there is Telecom NZ used the rival CDMA broadband space, retail service providers an increasing dependency on bundling technology. It closed this after its continue to compete away any chance of services with broadband to create a 2009 move to the XT network. strong, sustainable ARPU growth.” profitable overall package.

2018 / Issue 7 4 The Download | In brief

DUNEDIN’S CITY-WIDE WI-FI COMPLETE With the opening of the site at Macandrew Bay, Dunedin’s free city-wide Wi-Fi network is complete. The network operates 15 sites across the city. Spark built the network, which was established by the Dunedin City Council. The company says 50,000 people use the network each month. The users have 900,000 sessions and download more than 5000GB.

InternetNZ Chorus tests restructures broadcast- InternetNZ has merged with the .nz over-fibre registry business, NZRS, and reorganised Chorus has begun testing a direct its leadership team. The combined television broadcasting service on operation, which now also includes the its fibre network. The service has the Domain Name Commission, will be capacity to deliver high-definition headed by Jordan Carter. Carter was television using 4K, or even 8K, previously in charge of InternetNZ. material. The broadcast service will Former InternetNZ deputy chief use a second port on the optical executive Andrew Cushen will become network terminal that is installed in outreach and engagement director homes. It operates in parallel with in the new organisation. Community any broadband services that are in programme director Ellen Strickland use and does not affect them. moves to become group policy director. Chorus says it is likely to be used Dave Baker, previously chief by local broadcasters wanting to technology officer at NZRS, will offer a higher quality service. At the become technology services director, moment, broadcasters either need while Sebastian Castro will remain as to partner with ISPs or develop their chief scientist. own internet apps.

“Is 5G really going to make us all taller, more attractive and richer? Probably not. It’s an evolution. It’s called LTE which stands for long-term evolution for a reason. It consolidates low-power stuff for things with the high-throughput, low- latency stuff for mission critical solutions. It is trying to be a radio network that is all things to all people.” HUGH UJHAZY, IDC Asia-Pacific lead for telecommunications and internet-of-things speaking at an event in Auckland in May, discussing next generation access around the world.

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SPARK'S QRIOUS UNIT GETS NEW BOSS, NEW FOCUS Nathalie Morris, currently general manager for data-powered marketing at Online crime cost New Zealand Qrious, will take over as CEO following the departure of David Leach. Leach $5 million in 2017 replaced founding CEO Ed Hyde 18 The Computer Emergency Response being only a fraction of the total. months ago. The company says it has Team (CERT) says online criminals The team’s records show that the changed its strategy to focus more on stole $5.3 million in New Zealand public reported 1131 significant customer intelligence and engagement. last year. That’s just the money we cyber-breaches in 2017. Most of the know about. CERT admits this figure reported losses were in the fourth could be the tip of the iceberg. It quarter of the year. CERT recorded says many breaches go unreported 377 incidents in the quarter, worth Research with publicly notified incidents about $3.4 million in losses. data traffic climbing fast Commerce Commission Research and Education Advanced BY THE Network NZ (REANNZ) says it is seeing launches fibre study strong traffic growth. In the last quarter NUMBERS The Commerce Commission is studying fibre of 2017 its members shared 445TB of services. Telecommunications Commissioner research and education data, that’s Stephen Gale says the study aims to give the three times the volume shared a year commission a better understanding of providers’ earlier. During the same quarter it hit a 204GB networks, fibre services, network operations and record for what the organisation calls Average data usage business practices. “international commodity traffic”. At per connection, per month 3918TB, it was up almost a petabyte The study will pave the way for future — that’s 1,000 terabytes — on the regulation of fibre services. previous year. Gale says: “Starting this study now, AVERAGE BROADBAND SPEED IN NZ under our market studies power in the Telecommunications Act, gives us a head-start 74.8Mbps on gathering information from Chorus and the local fibre companies. We expect the information about fibre services to be useful regardless of the Peak traffic on 04 April 2018 form that regulation might take.” It comes at a busy time for the Commerce 1.59Tbps Commission’s telecommunications researchers. The fibre study joins the commission’s studies into mobile markets and backhaul services.

2018 / Issue 7 6 Interview | Susie Stone

Skirmishes, scars and working for a challenger Susie Stone thrives in smaller telcos where the entrepreneurial climate allows her to just get things done. The Vocus Communications GM tells Rob O’Neill about the battles and the camaraderie

GETTING WORK DONE and serving The scars came from ongoing skirmishes policy to lawsuits over the promotion of the customers well is now a lot easier than with Telecom as the latter fought to Māori language. when Susie Stone first joined the telecoms maintain its inherited monopoly position. Much has changed for the better over industry 20 years ago. “Those were the old days when the last two decades, she says, but issues Which is fortunate because being number porting was still being negotiated of market dominance still regularly general manager for business, between the carriers,” she says. “Telecom emerge. However, this is not peculiar to the government and wholesale at big believed it owned the entire New Zealand telecommunications industry. challenger brand Vocus certainly gives number range.” “I think there is a particular range Stone a lot to do. Prominent among her Stone and her team would try to get local of industries affected, where you have tasks has been merging operations when numbers for Clear’s business customers network economic effects – often large Vocus acquired Auckland telco CallPlus, and Telecom would refuse to allocate barriers to entry, if you’re talking about as well as managing the company’s contiguous number ranges. infrastructure investment,” she says. move on to the Telecommunications as a “You might get 926 here and then you Right now, the latest round of regulatory Service (TaaS) panel of telecoms service might get 938 over there, so you couldn't telecoms market interventions, in the providers to the government. provide a great customer experience. It form of the Telecommunications (New Stone talks about what it is like working would be little things like that they would Regulatory Framework) Amendment Bill, for challenger telcos. It was while working do – and pricing of course.” is being brewed up in Wellington. Stone on local access and fibre roll-outs at Clear When Clear went after a big client it was tapped, in the absence of Vocus’ Communications in the late 1990s that would also often find that its target customer regulatory and commercial manager Stone received her first industry battle scars. could get better pricing at a corporate level Graham Walmsley, to present Vocus’ “My area was deploying the local fibre than Clear received at wholesale. oral evidence. and deciding what we would put on it. Stone likes complexity though. She came Top of the company’s wish list are Then that grew into a broader products’ to the telco world out of the Ministry of changes to – or, indeed, the removal of – role, and then Clear got sold,” Stone offers Commerce, where she worked on an array provisions easing restrictions on the lines

as a potted work biography. of regulatory issues, from radio spectrum of business that network operator Chorus HODGKINSON ROBIN BY PHOTOGRAPHS

thedownload.co.nz PHOTOGRAPHS BY ROBIN HODGKINSON 8 Interview | Susie Stone

can undertake, and changes to regulate the products you offer depending on the only one entry-level anchor fibre product. capability of the equipment you put at the “I think that it’s completely erroneous end of the fibre.” to suggest that these are minor and Infrastructure also provides for better inconsequential changes,” Stone says of economies of scale, allowing Vocus to the lines of business changes. light large chunks of fibre it would not Vocus’ submission describes the necessarily buy on the wholesale market. combination of the two provisions as a “toxic A weak point for Vocus is mobile. It cocktail” for existing retail competitors. delivers this service as a mobile virtual Another priority is building Vocus’ network operator, or MVNO. Once again, product and service capability for the TaaS regulatory grit in the market machine is panel, which it joined in January. the issue. Getting on to the panel was especially “If you have a look at our submissions, welcome because FX Networks, which we’d quite clearly like to see changes, to Vocus acquired for $116 million in 2014, make it more cost effective for us and to boasted quite a strong government give us the ability to really innovate in business. Vocus needed to get on the panel terms of what we offer,” she says. to secure this again. "Telco is a land of “We’d like to see the pricing structure Stone doesn’t agree with recent calls by changed fundamentally, and I think the local industry lobby NZRise to end all-of- commodity products structure of how the products are delivered government procurement by panel, which, and fast-moving to us changed too, so we’re able to control it argues, disadvantages Kiwi companies. how we put products together, rather than Stone says she doesn’t quite understand technology changes. being limited by a defined product set that NZRise’s particular beef, because she So, it’s how you comes to us.” doesn’t see why providers can’t go and get As for NZ Inc, the availability of ubiquitous themselves on to panels. That’s what gives manage the customer fibre is a game changer, says Stone. them the “right to play,” she says. relationship… and “We only have to look at what’s going on Up until its 2016 merger with M2 the quality of the in Australia to see the contrast.” Communications, Vocus didn’t bid to go on Having a core infrastructure in place the TaaS panel because it didn’t have the service that you give, gives companies the ability to innovate on necessary capability, she explains. that matters" top of the network. “So, I guess, I don’t see the panel Before fibre, the wholesale business structure per se as being a limitation.” Susie Stone basically saw the traditional carriers Far from it, in fact. Once the Vocus TaaS VOCUS COMMUNICATIONS GM swapping minutes and traffic between each offering is bedded down, Stone says, the other, or selling inter-city backhaul. capabilities developed will be taken out to “Because we’ve now got this ubiquitous the business market. fibre platform, we sell a service called While mergers, regulation and industry ‘Telco in a Box,’ where we take brands structures are always important, and to market that have absolutely no telco sometimes entertaining, it is business as experience at all, but want to add a telco usual that is the key to success – the day in, “There’s lots of talk about how they can service to the other products and services day out of sales and customer service. take stuff that they have sitting in their that they offer. Stone says it is this engagement, and offices and move it to the cloud.” “You can do that now because you’ve the service delivered afterwards, that For Vocus, the ability to be flexible is got this fibre infrastructure laid out to differentiates Vocus. key, and that is, in part, a product of having homes and businesses.” “Telco is a land of commodity products the right scale to deliver network reach A career with challenger telcos holds no and fast-moving technology changes. and competitiveness, but not so much regrets for Stone who relishes change and So, it’s how you manage the customer scale that the customer is going to get “lost start-up style thinking, and the ability to relationship; how you understand the inside the business”. get things done. There’s been no long- business and the quality of the service that And, again, the FX Networks buy-out was term career planning – just a search for you give, that matters. a “fundamental differentiator” here. It gives interesting work and colleagues she likes to “It's not just the sales side. It’s if speed and responsiveness for customers. work with. something does go wrong, how you “If a customer wants a reasonably large “Challengers are often more interesting respond to that.” amount of capacity to be turned on quickly, to work in because it’s more about Right now, Stone is seeing a lot of interest between two data centres in two cities, I camaraderie and getting stuck in and from customers around voice, as well as can do that really fast,” says Stone. getting things done,” she says. “You’re much interest around IP telephony capability, “Having your own infrastructure gives not worried about protecting old legacy hosted voice services and the cloud. you that ability, and you can differentiate revenues and things like that.”

thedownload.co.nz Feature | 4K television 9

STUNTS, SPORTS AND SUPER-SHARP IMAGES – 4K TV PROMISES BIG CHANGES

hen ultra-high definition football Images emblazoned on fast and is now ready to go mainstream. A (UHD) broadcasts were launched surprisingly large number of New Zealand W in the UK, Sony took out blades of grass and much households already have 4K-capable advertising printed on blades of grass and more – a revolution in television sets and most televisions sold the studs of players’ boots. It was a stunt, these days are 4K. In fact, we already have but the point was made: the images are so television is coming, 4K streaming over the internet. Netflix clear you can see even the smallest details. writes Haydn Green does it, so does YouTube. What Chorus is UHD (also known as 4K) TVs are the proposing is slightly different. biggest growth market for manufacturers “Fibre broadband will be available to like Samsung and LG. UHD content is 87 percent of the New Zealand population becoming much easier to get, and devices Telecom) over VDSL broadband. But here by 2022, and we’re connecting homes at from game consoles to media boxes are in New Zealand we have the chance to go a rate of one every minute of the working 4K-compatible. This is definitely not a fad. one better, we can use UFB fibre. day,” says Rodgers. “This means that New There is an issue with the format, Chorus has begun trials to see if New Zealand will have the infrastructure in however. High definition means large Zealand’s fibre network can be used as place to take 4K to the mass market.” files. The more detail you pack in the more a broadcast medium direct to people’s The service would run in parallel to any information needs to be stored in the files. homes. No more rain fade, no more aerials. other broadband service also provided over This increases again if the content includes Right now, it’s a proof of concept, but the the fibre network. It would use a second high dynamic range (HDR) – and high- potential is massive. port on the optical network terminal quality audio, such as Dolby Atmos. Kurt Rodgers, Chorus’ network strategy (ONT), which would be installed in homes, In the UK, those UHD football matches manager, says “the end-to-end 4K to connect to consumers’ televisions. What were broadcast by BT (formerly British television ecosystem has been developing this means in practical terms is still up in

2018 / Issue 7 10

the air, but the development of the technology is exciting. Because fibre has a much higher capacity level, this separate broadcast service wouldn’t be connected to – or have an impact on – your regular broadband (although it may require a physical connection from the ONT to your television). It also means that if everyone in your neighbourhood is watching the rugby, you can still happily stream Netflix.

TESTS UNDERWAY “4K isn’t worth paying for if the performance is bad,” says Hema Patel, general manager of Spark’s Lightbox, so she’s looking forward to the results of the Chorus test. So is Mediaworks. "We're always open to any new technology that makes our product more accessible and the viewer experience better," says a spokesperson.

"A surprisingly large number of New Zealand households already have 4K-capable television sets and most televisions sold these days are 4K"

Kurt Rodgers CHORUS’ NETWORK STRATEGY MANAGER

The current 4K streaming experience is mixed. Netflix offers a UHD “premium” service for an extra $3.50 per month. Apple’s iTunes store sells UHD movies, but you can only view them on your television with the 4K Apple TV device. Even having a 4K television is a barrier. While most homes have high-definition television, 4K UHD televisions are still rare. However this television category is the fastest growing one. Companies like LG and Samsung are in a race to get as many people converted to high dynamic range UHD televisions as possible. And sport could be the driver that pushes this technology through to consumers the fastest. “If there is ever going to be demand for 4K content, it will be for sports,” says Patel. She’s right. Just before the last Rugby World Cup there was a spike in sales of televisions as everyone rushed to upgrade. Manufacturers are bracing for the same again next year. The 2019 Rugby World Cup is going to be broadcast by TVNZ and Spark, not Sky. And, while no decision has made concerning exactly how the games will be broadcast, they will be

thedownload.co.nz Feature | 4K television 11 PHOTOGRAPH BY ROBIN HODGKINSON ROBIN BY PHOTOGRAPH

2018 / Issue 7 12 PHOTOGRAPH BY ROBIN HODGKINSON ROBIN BY PHOTOGRAPH

streamed over broadband. This of Freeview, but delivered in a Q&A means that if the Chorus trial works different way and with a lot more we could see the All Blacks broadcast functionality. over the fibre network next year. Beyond simple 4K television SPARK TALKS Rodgers says New Zealanders are there is a whole other world. even keener watchers of sport than Broadcasting over a UFB fibre the British and deserve to get the network means you can add different RUGBY WORLD same high-quality images on their layers to programmes. This could screens. Rugby has yet to be broadcast include different language tracks or CUP 2019 in UHD in New Zealand. interactivity, or the ability to change Along with TVNZ, Spark has won the “4K video-on-demand services camera angles in real time. It also rights to broadcast next year’s Rugby are already available via the likes of means we could potentially see World Cup. The showcase series of Netflix and Amazon Prime, but it’s television become more accessible going to be live streaming of major with the use of closed captions and games could be a catalyst for change events like sport that really make 4K descriptive audio tracks. There is in how Kiwis view sports as they will compelling to viewers. even the chance that captioning be able to stream matches live or Our nation’s favourite sports – could be delivered by a third on-demand, either over their home rugby, cricket and netball – will all look party, rather than relying on the broadband or mobile connection. fabulous in 4K quality. Bring it on.” broadcaster to do it. Rob O'Neill talks to Spark But sport is fleeting, what’s Things that you could previously following its announcement beyond that? only do with pre-recorded shows “There’s not a lot of 4K television will be possible with live television. What is the deal, how does TVNZ fit in? content but there are a lot of 4K And all simply because the UFB fibre Spark bid for and won the rights to the Rugby movies,” notes Patel. Lightbox is network can carry more information World Cup 2019 and the other tournaments, so we currently moving to a new platform than a regular broadcast ever could. are the primary provider. If you want to have your and will be offering pay-per-view The fibre network is increasingly pick of matches to watch during the Rugby World movies, so 4K delivery is at the covering the country, and a Cup 2019, this will be via a streaming service. forefront of their thinking. significant number of homes are Spark also has an agreement with TVNZ that will Chorus has said it will offer all now connected. The race is on for see TVNZ screen some games free-to-air via its broadcasters the same opportunities. 2019. The chance is there. Hopefully, So, we could see a brand-new version someone will grab it.

thedownload.co.nz Feature | 4K television 13

channels. We’ve committed to seven live have rolled out 4.5G to 30 towns so far. This thousands more New Zealanders will games free-to-air, including the opening offers speeds of up to 300Mbps, or three to have access to quality broadband by match and the final, with the other five live five times the speeds of standard 4G. the time the Rugby World Cup comes matches still to be confirmed. We will also work with our competitors around. However, we recognise there and partners over the next 18 months won’t be broadband available to every What will Spark be doing to ensure to put arrangements in place to ensure rural home or farm by 2019. most New Zealanders will be able to New Zealanders have a great experience This is an issue high on our radar given watch the Rugby World Cup? streaming these games, no matter what the importance of this tournament to New We would not have bid for these network they are on. Zealanders and we are actively looking at tournaments if we weren’t totally confident solutions. We’re still working through the that our high-quality network (and the details, but this could include deploying excellent networks of our competitors) temporary infrastructure to community would be able to deliver them via "We think the Rugby centres – such as rugby club rooms. There streaming services to New Zealanders. World Cup 2019 is a is a lot of work to do, but the tournament We already have hundreds of thousands great opportunity for is still 18 months away and we will work of customers streaming every night via actively on this. Netflix, Lightbox, YouTube and so on. a showcase event that Sports streaming needs to be optimised a Will Spark use local Content Delivery little differently to entertainment, but we will be a real catalyst Network providers, and will the will have a platform up and will stress-test it for change in how matches be served from Sydney? And, well in advance of the tournament. people view sports" where does Lightbox fit into this? There are currently 1.6 million households We are still working through specifics in New Zealand with broadband, and of around our platform. We will have more to these three-quarters have high (100GB-plus) Will this result in accelerated 5G? say about this in the coming months. data caps or unlimited plans. All but a tiny Given the need to get spectrum for 5G, it’s percentage of broadband connections have unlikely any 5G services will be available What has Spark learned from its speeds capable of video-streaming. before 2020. However, our 4.5G service experience with Premier League The roll-out of fibre is also obviously a is already in 30 towns. 4.5G is capable of Football when it worked with huge advantage when it comes to giving delivering up to three to five times more Coliseum Sports Media? New Zealanders a high-quality viewing speed and capacity than 4G from a single We learnt some valuable lessons from experience over a live stream. More mobile tower to compatible devices, so you Lightbox Sport. The English Premier than 500,000 homes now have fibre are already seeing a big increase in speed League proposition was actually a great and a further 800,000 have Ultra-fast and capacity from this technology. success. The only reason we didn’t keep Broadband down the street, so they can be offering it was that we were outbid for the connected if they wish. While details of any What percentage of the population will rights. After we lost the English Premier customer education campaign leading up have ‘fast enough’ broadband in time? League, it made it hard to keep Lightbox to the Rugby World Cup 2019 are still being While the vast majority of New Zealand Sport going. worked through, you can assume that the will have access to good quality broadband Since then, Kiwis have become more advantages of a fibre connection for live by 2019, we know there are some people and more comfortable with streaming, and streaming sports will feature in it. – particularly in more remote rural areas – every night we have hundreds of thousands Spark also offers a wireless broadband who do not have access to broadband, or of people streaming on our network. We product that has the speed and capacity to whose broadband isn’t of a high enough think the Rugby World Cup 2019 is a great carry a live stream for an event like this. We quality to stream the games. opportunity for a showcase event that will have invested – and will continue to invest The government-sponsored Rural be a real catalyst for change in how people – substantially in our mobile network. We Broadband Initiative will mean view sports.

2018 / Issue 7 14 Company focus | Trustpower

TRUSTPOWER Riding the disruption by Bill Bennett

NEW ZEALAND’S NEXT largest broadband service “At the time, it was obvious that competition in the provider after Spark, Vodafone and Vocus is not a electricity sector was going to get more intense with traditional telco. Bay of Plenty-based Trustpower lots of new entrants and new brands.” still describes itself as an electricity generator and Hawksworth says: “We considered our potential retailer. While electricity is still the company’s main responses to that competition. At around the same time, business, in the last five years it has added gas and work was starting on the nationwide fibre roll-out. It telecommunications services. In its own words, was clear to us that at some point in the future this was Trustpower is now a multi-product retailer. going to change the nature of the telecommunications Trustpower is New Zealand’s fifth largest electricity industry. We also saw the separation of Telecom into generator and the fourth largest retailer. It has about what became Chorus and Spark.” 12 percent of the retail energy market. It owns hydro The broadband wholesale market changed. plants in New Zealand and Australia. The business is Hawksworth says Trustpower saw that as an part-owned by Infratil, which has a 50.7 percent share. opportunity. “It meant as a small player we were About a quarter of the remaining shares are controlled effectively a new entrant [and] we could start to have by the Tauranga Energy Consumer Trust and the rest some certainty about the platform and the services we are owned by small investors. could provide for our customers.” Broadband isn’t a bolt-on though, it was a deliberate Hawksworth and his team sold this to the company strategy to get into the sector and, in hindsight, the board by talking about how the telecommunications timing was perfect. industry would transform with fibre going past most Chief executive Vince Hawksworth says Trustpower New Zealand homes. “We could see that a player like

made the decision to move into broadband in 2011. us, which already had a lot of customers, would be able PARKER CHRIS BY PHOTOGRAPHS

thedownload.co.nz Vince Hawksworth,

PHOTOGRAPHS BY CHRIS PARKER CHRIS BY PHOTOGRAPHS Trustpower chief executive 16 Company focus | Trustpower PHOTOGRAPH BY CHRIS PARKER CHRIS BY PHOTOGRAPH

to cross-sell. We knew that so long as we small telco business. Hawksworth admits could provide a quality level of service we’d Trustpower didn’t do much with Kinect, but be able to make progress.” "We planned to ask it did give the company some insight into It helped that, thanks to the open access people if they would telecommunications and a foot in the door. model, Hawksworth didn’t have to ask Ultra-fast Broadband and the open access the board for a large capital expenditure ‘like fries with that’. model were the right fit for Trustpower’s budget. “We didn’t need to spend a lot of Then we would sell ambition. Hawksworth says: “All of our money before we got our first customer. internet provision was effectively done as We took a relatively low-cost approach to them gas or broadband reselling other people’s services.” starting up,” he says. as well as electricity. As part of its strategic overview, This wasn’t without its own set of Trustpower’s management team issues, however. Hawksworth says: “If In the event, we researched what was most important to you start a broadband business this way, found it worked the broadband customers. then when you start to become successful “We realised people have busy lives, so you have to run really fast to catch up other way" we came to the conclusion that bundling with the investment. However, by then Vince Hawksworth utilities could have some traction. We knew you’ve proven the business case and you’re TRUSTPOWER CHIEF EXECUTIVE we were able to do this, so, in 2013, we starting to see results.” rebranded. It wasn’t just a change of name, The recent push wasn’t Trustpower’s we had new colours and a new logo. We also first foray into telecommunications. A acquired a small energy and gas business decade or so ago, the company acquired in Whanganui called Energy Direct New an Oamaru-based call centre business that Zealand. This gave us the opportunity to sell specialised in outsourced support for the gas as well,” says Hawksworth. electricity sector. As part of the transaction, Trustpower relaunched as a triple-play Trustpower also picked up Kinect, a business offering electricity, gas and

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broadband. Hawksworth says at first the As with Trustpower, the attraction changed: “We worked back from the business intended to sell electricity as the for Vocus’ customers is a seamless consumer. We’ve taken a little more lead product. “We planned to ask people if experience, with one bill and a single point control of things. We now have our own they would ‘like fries with that’. Then we of service. Hawksworth notes that Vocus operations team. We’ve invested in our would sell them gas or broadband as well as has been acquiring electricity customers own cache for Netflix and Google. We now electricity. In the event, we found it worked at a fast pace by industry standards. have some infrastructure and we have our the other way. People were coming to us to It may be competition, but it doesn’t own backhaul.” buy a fibre-based broadband product and worry Trustpower. As Hawksworth says: The strategy appears to have delivered buying their electricity with it.” “Imitation is a compliment”. He also points for Trustpower. Hawksworth says that Bundling resonated with part of the out the model is increasingly popular today the company has 90,000 broadband market. Hawksworth says at this point overseas. In Australia, the Dodo and connections and 100,000 multi-product Trustpower started to build the business. Amaysim telco brands now also sell energy, customers. “We would be one of the fastest In the early days, the company wooed while in the UK the Utility Warehouse growing start-ups over the last four or five customers with price-led deals. It priced offers similar service bundles. years,” he says. broadband under the average market rate, For Hawksworth and his management This year, Trustpower reported a net after and introductory prices were lower again team, the switch from copper to fibre tax profit of $129 million, up 38 percent on for the first months of a contract. represents a once in a generation the previous year. Revenues were $946.9 He says since then Trustpower has opportunity to secure new customers. He million and around $80 million of this came moved to value-led deals. The company says people are more open to the idea of from the company’s telco business. offers a flat-screen TV or a fridge to people changing their service provider when they If there is a secret to making Trustpower’s who sign up for longer term contracts. The switch technologies. strategy work, it’s the nature of its multi- deals appeal to a particular demographic Another turning point was what product customers. The electricity business segment, says Hawksworth. Hawksworth calls the ‘Netflix revolution’ and the telecommunications business share While Trustpower is the only electricity of 2015. This changed peoples attitudes a common problem with customer churn. retailer to have a substantial broadband towards fibre and broadband. It also In practice, customers who buy more than business, it is not the only company playing changed usage patterns; customers now one service from a retailer are far less likely in both markets. Vocus, which is very much use a lot more data. to jump ship. Hawksworth says Trustpower steeped in the telco tradition now offers Before Netflix, Trustpower relied on has found that customers buying both electricity to its customers. outsourcing everything. He says that broadband and electricity stay longer.

PHOTOGRAPH BY CHRIS PARKER CHRIS BY PHOTOGRAPH THE RISE AND RISE OF TRUSTPOWER In last year’s annual monitoring report, In Trustpower’s April 2018 operating the Commerce Commission identified report, published on the NZX website, the Trustpower as New Zealand’s fourth company said it added 11,000 broadband largest broadband service provider. It connections in the previous year, taking comes next after the traditional telcos: these to a total of 87,000. That is a 12.5 Spark, Vodafone and Vocus. percent growth rate. This is an impressive At the time of the report, the Commerce result at a time when the total number of Commission estimated Trustpower had a New Zealand broadband connections is

broadband market share of around four only up around three percent. LASSEDESIGNEN/SHUTTERSTOCK.COM BY IMAGE percent. This put it in front of 2degrees, For now, Trustpower’s telco activity is which sits in fifth place with a three limited to reselling broadband. Although percent market share. the main push is with fibre, the company While its market share is relatively also has copper broadband customers small, Trustpower is growing at a clip. serviced by Unbundled Bitstream Access The monitoring report says Trustpower or UBA. This approach gives Trustpower and 2degrees are the two fastest a degree of control over the user growing service providers. Under the experience without heavy investment headline “Smaller players gain ground”, in infrastructure. The company has the Commerce Commission said: “Both previously made public statements Trustpower and 2degrees ran strong that it would also like to offer mobile marketing campaigns in 2016 and telephony but is frustrated by the lack of successfully gained a significant number of mobile virtual network operator options new fixed-line broadband customers.” at the moment.

2018 / Issue 7 18 Strategy | Beyond dumb pipes

THE DAYS OF BEING a simple ISP providing a plain-vanilla internet service are long gone. Technology doesn’t stand still, and while this poses a challenge it also provides opportunities for creative ISPs to change and grow. Two very different New Zealand ISPs – business- focused DTS and broadband- plus-power specialist Megatel – have both harnessed technology changes to provide extra value to their customers in quite different ways. DTS started out in Wellington in 2002 and just four years later expanded into Australia. DTS’ managing director, Steve Ritchie, says he noticed early on that a lot of his customers operated on both sides of the Big Ditch and there was a need for trans-Tasman connectivity. DTS specialises in serving these connectivity needs and now A little covers both countries totally with its bespoke WAN (Wide Area Networking) business strategic solution and high-quality VoIP (Voice over IP) service. thought goes DTS’ services are particularly valuable to those companies that have several a long way branches. For our interview, we connected via a Wellington telephone number, but Ritchie Smaller ISPs struggle nowadays was on Australia’s Gold Coast if they stick with offering a vanilla and I was in Auckland. The service. To succeed they need to sound quality was excellent. add value. Two local ISPs show how “We’ve always ensured we have good pipes,” says Ritchie. they did just that in very different He says DTS has always been ways. Johanna Egar reports a business ISP, so quality is important. The company also constantly looks ahead. “We continually plan. We sit down and think, and plan. And we are always looking for new products and services we can offer our customers.”

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have to provide value or you are simply a utility. You need to provide good products for people and you can’t have a utility attitude.” Analyst Gartner’s telecoms specialist, King-Yew Foong, echoes Ritchie. He recently looked at what smaller ISPs can do to compete with larger telcos in Gartner’s report, Market trends: top five disruptions for CSPs (communications service providers) worldwide, 2018-2023. One strategy smaller ISPs can adopt is to partner with those in other business areas, says Foong. Which is exactly what DTS has done with both its new products. Foong advises ISPs to “be like supermarkets and sell others’ products, and bill on behalf of your partners.” Partnering is a big part of our other ISP Megatel’s strategy. But it is also involved in customer account management and billing. The Steve Ritchie, latter is an under-rated but DTS managing director complex and important part of delivering utility services. One In line with this, DTS has service. Tailored to customers’ of Megatel’s main services is a recently introduced two specific business needs, the double utility broadband-cum- new services. One is a new software behind it displays a power package. softphone service. This VoIP- customer’s unique company based service uses a simple information on-screen to the POWER & ASIAN TV – app downloaded from Google ‘receptionist’ at the call centre, UNUSUAL MIX WORKS Play that connects desk and so he or she can act like they Megatel has been offering mobile phones. It means users are working in-house. The a triple-play service – can answer calls on either service runs on DTS’ internet mobile, internet and TV phone wherever they are. The and uses its VoIP facilities. – to Auckland’s Korean and technology is licensed from the Ritchie says DTS is more of a Chinese communities for US’ CounterPath and managed managed service provider than several years. The Albany- in-house by DTS. a simple ISP these days, but based company’s youthful The company has also just boundaries between the two founders noticed this was launched a rather unusual are becoming blurred. popular in Asia but hadn’t yet service for an ISP – a virtual “Bandwidth is becoming reached New Zealand. At the reception service. DTS has a commodity, so you have time, other ISPs were offering teamed up with a contact to offer other services like just a basic broadband service. centre to provide the new VoIP or WAN, or managed Megatel’s founders Jisan Jang, app-based remote answering services," says Ritchie. “You known as JJ, and Jakob Lee still

2018 / Issue 7 20 Strategy | Beyond dumb pipes

keep a close eye on the Korean market especially, as it tends to be ahead of New Zealand. "If you are small, it becomes But the company didn’t stop difficult if you only provide at triple-play – it also pioneered broadband-plus power in New broadband. You have to be creative Zealand – ahead of Trustpower. and add value to your existing Its partner is Auckland’s Vector. product. I strongly believe that the Power has become a very profitable part of Megatel’s only way to stay in the market and business and has also allowed win customers is by bundling and it to move out of its original niche and attract mainstream providing customers with services" business customers who are Jakob Lee interested in the cheap power MEGATEL CEO element of the package. Megatel’s Jakob Lee, now Waikato – this will be of value to well beyond this with the aid CEO, says the company is some new customers. of SDN (Software Defined always seeking to add value Lee says, “If you are small, Networks) technology. This for its customers. For instance, it becomes difficult if you only new technology puts elements Megatel will upgrade new provide broadband. You have of the telecoms network in power customers’ legacy to be creative and add value to the cloud. Importantly, it electricity meters to a smart your existing product. I believe allows ISPs to have the kind meter for free if necessary. that the only way to stay in of digital relationship with Although Lee says 80 percent the market and win customers their customers that Netflix, of New Zealanders now have is by bundling and providing Amazon Web Services or these smart meters. However, customers with services.” Google enjoy. For instance, as Megatel is about to launch a Although Megatel started customers can make changes nationwide pre-paid broadband with a simple 15 percent to their service at the click of and electricity product – starting power discount to attract a button, rather than needing with the Bay of Plenty and customers, it has now gone technician help.

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Megatel is simplifying its pre-pay broadband-cum-power packaged service for customers in this way. Customers can now easily check their balance or top it up using an app Megatel has developed. SDN technology helps ISPs too. Lee says that “on the management side, the automated systems we’ve built mean that to deal with King-Yew Foong, Gartner chief [say] 2,000 customers we only of research for need one-and-a-half service communications centres. And our automated service providers smart app helps customers make multiple requests.” further, a textbook example maintain” says Foong. He Megatel is also expanding of what Gartner’s Foong points to Singapore-based its TV service into the region. recommends smaller ISPs do. MyRepublic’s use of SDN for It offers Korean and Chinese Gartner’s other its MySDN WAN service. The television programmes, either recommendations include ISP – it is a very large one with a through the set-top box it looking to the universities and small New Zealand presence – developed early on, or over PC the start-up world to access the advertises this service as being or mobile. It is now expanding funding and skilled staff small much more flexible than a this service to Vietnam and ISPs often lack. Foong also traditional WAN. For instance, Thailand, no doubt helped by recommends taking advantage it allows for immediate changes the fact that its youthful staff of cheaper cloud services like and can also be set up quickly speak up to four North Asian security firewall services, because it is software-driven. languages, as well as English. as well as SDN, which puts Megatel is also obviously Megatel’s service offers more telecoms routers in the cloud. making good, if different, variety and is also cheaper than “Using these cloud-available use of SDN technology. But satellite-delivered television. services is a ‘disruptive play’ it’s not the only one. Another To grow in this way, Megatel for ISPs as telco incumbents local ISP, Napier’s NOW, is is expanding its multiple have expensive network also doing so – see story in our television partnerships even infrastructure they need to news section.

WHAT THE TELCOS ARE DOING The big telcos, Spark, Vodafone and Vocus, have also been Then there is retail giant The Warehouse which works with keen to add value to their services. And power companies like 2degrees to offer a budget mobile plan aimed at people who Trustpower have got into the market from the other end, adding make a lot of calls but don’t use much data. broadband services to their power offering. Vocus Communications has chosen to expand into the For example, Trustpower offers a variety of broadband plans energy market. Vocus has CallPlus, Slingshot and Orcon under along with its electricity and gas service – plus a free fridge, its umbrella and specialises in corporate telecommunications washing machine or television for new sign-ons. A sign of just how services but also offers a discounted electricity and broadband competitive the power-cum-broadband market has become. package for consumers. This comes courtesy of small power Spark has two big added-value offerings: Lightbox, its company Switch Utilities, which it bought in 2016. television service, and Morepork, its home security offering. Lastly, there are two notable ISPs worth mentioning: Lightbox serves up popular TV shows that can be watched PrimoWireless and Voyager. We covered both ISPs in the last issue on multiple devices – from smart TVs to laptops to tablets. of The Download. PrimoWireless runs Taranaki’s rural wireless Morepork is Spark’s home security service which allows you to internet service but also runs a VoIP service over the broadband monitor your home from your mobile or a web portal. fibre it uses. This provides a backbone for its mainly rural service. Vodafone also offers an internet-delivered television service. While ISP-delivered VoIP services are common, Primo’s adds real Customers using its fibre network can enjoy a consolidated TV value for its rural customers. Voyager has moved in quite another service that delivers Sky TV, free-to-air television and a range of direction. The business-focused ISP has transformed into a much online and app-based entertainment services, including Netflix, broader company and now offers a cloud-based PBX service, as via just one set-top box. well as modern video-conferencing services.

2018 / Issue 7 22 Network technology | Now SD-WAN

Napier ISP Now, is providing telco-style network services – based on SDN (software defined network) technology – to Hawkes Bay’s five councils, writes Johanna Egar. Napier’s council is already reaping the benefits

HAWKES BAY’S FIVE councils have leap- We effectively no longer have a traditional really easily – it’s literally drag-and-drop frogged into modern networking with their star-and-spoke WAN configuration, so through a browser interface.” He compared decision to install ‘network in the cloud’ we’ve seen some immediate benefit this with the costly, time-consuming SDN (software defined network) technology already,” says Barr. business of having to brief an IT integrator on their WAN (wide area network). SDN technology puts a lot of a telecoms and then have that company’s engineers Napier City Council has used it to network’s technology in the cloud, which make site visits to make any and every upgrade its traditional WAN and have means users can make changes and add network change. already seen earthquake-proofing benefits services easily, in a similar way to how you “Now you can do this from the keyboard – by accident. can add servers and applications remotely literally through the browser. You can pop Duncan Barr, Napier City Council’s using hosted services like Amazon Web up a site and add it to your WAN overnight, information services manager, says Services (AWS). It also means, as Barr and you don’t need an integrator. It they put out a tender to upgrade their discovered, that you are less vulnerable, means you’re more agile. Traditionally, network last July and started installing because you are less hardware dependent businesses have had to fit into how a their new SD-WAN from local ISP Now, on traditional infrastructure. network was engineered and change was in November. The council was doing a Beyond this, Now – which thinks of itself slow, but today it’s about how the network seismic assessment at the same time, to more as a digital services provider than can improve the business experience. see how earthquake-proof its buildings an ISP nowadays – says the Nokia Nuage “The councils have a lot of sites. Napier were. They weren’t. This meant everyone Network SDN technology it is using to City Council alone has over 20 sites, from had to temporarily move out of the upgrade the five councils’ communications parks to aquariums, to swimming pools, council’s headquarters, says Barr. network is also quite transformative. libraries and administration blocks. They “But we didn’t have to house our comms Now CEO Hamish White says SDN have to manage the logistics of a very wide infrastructure on the premises while we makes networks a lot more agile. “It means area network. It’s massive. They had no evacuated as we could house it at Now. you can connect another site into your WAN visibility and weren’t very agile.”

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Duncan Barr’s take on this is that the councils were looking for a technology solution that would allow the five councils, which between them operate 62 sites, to collaborate better. They already have Infrastructure as a Service (IaaS) installed at the regional level – this provides computing services from the cloud – and with SDN technology also being in the cloud, the councils will be able to share services more easily. Barr says “SD-WAN is to traditional comms what virtualisation is to servers. It changes the way you operate in unimaginable ways. We’ve already got better redundancy, better bandwidth and a better price-point, but SD-WAN will enable us to do transformational stuff as we go forwards.” Now’s White says many businesses are still using clunky 25-year-old frame relay technology or hybrids, and painted a scenario dear to sports fans hearts of how SDN technology can easily bring major sports events into the office. “A major football game being shown one morning can easily be streamed as the IT manager can responsively manage and control traffic prioritisation at the stroke of a couple of keys – rather than spend weeks planning for such an event through an IT integrator.” SD-WAN technology allows IT Nuage SDN technology will deliver these benefits. “It’s comforting Now’s Hamish White (left) and Napier City managers to self-diagnose any network that Now has a major supplier like Nokia at the back-end. It’s not Council’s Duncan Barr – problems as well as prioritise traffic. The Tom’s IT company buying stuff off the internet. It’s not bleeding bringing ‘networking in the cloud’ to Hawkes Bay network is more reliable too as you can, edge technology now, but we are in the forefront. say, fail-over to a 3G or 4G connection and “We got SD-WAN by default, but that was because we wanted smooth over any bumps in connectivity. a technology solution. To us, as a business, we, the five councils, Barr says when the council put out its wanted closer collaboration and better services between us; that’s RFP (Request for Proposal), it was seeking the win, but we also got more for less.” a technology solution for the five Hawkes That Now is a local, Napier-based company was another Bay councils, so they could collaborate unexpected bonus. It was up against big telcos in the tender bid, and share services better. They want to but, says White, the solutions they offered used old – up to 30 share data and have virtual meetings more years’ old technology – “while we turned up with leading edge, easily, and to all be on the same network. for this part of the world, technology. The councils want to create “When we go to different councils, we a pathway for an ever-evolving future and to have a foundation want to be able to log into our home network network that promotes greater agility and visibility, so they can rather than have to use a VPN (Virtual Private embrace other cloud content and applications coming out… [SDN] Network) to get in. SD-WAN will simplify puts them on a progressive pathway.” connectivity between the five councils. These Elsewhere in the world, SDN technology, while still new, is are simple things we want to do under the already being used by major telcos. White thinks the councils’ umbrella of better collaboration.” move to SD-WAN was “pretty progressive”. Barr prefers a car Barr is confident this will happen – the analogy, saying: “We wanted a technology refresh. We just said council’s small IT team is still installing the we wanted a faster car, as opposed to a Ford Falcon – which is new technology, but he’s confident Nokia’s what you would have got in the past – and we got a Ferrari.”

2018 / Issue 7 24 Interview | Paul Walsh

Since Chorus established its art programme, artists throughout the country have been painting its telecommunications cabinets in a bid to prevent vandalism, writes Holly Cushen

YOU MAY HAVE SEEN Paul Walsh’s art work adorning This led to a newspaper article and then a petition telecoms utility cabinets on our bustling city streets to “Bring back the Grumpy Cat”. The article caught and in quiet cul-de-sacs. Walsh grew up in Rotorua the attention of Jo Seddon at Chorus, who got in touch, and first realised his artistic ambitions aged just 15. via the newspaper, and suggested I paint some of the Now based in Auckland, he has his own website and is local Chorus cabinets. Forty artworks later and I’m still frequently commissioned to create commercial works. doing them. He makes a living doing what he loves. We asked him some quick questions to get a better Tell me about some of the experiences you’ve picture of the man behind the quirky cabinet artworks. had painting the cabinets? Almost every cabinet leads to some public interaction When did you realise you had artistic talent and – particularly once the artworks start taking shape. have you always aspired to be an artist? It’s almost always positive. People love seeing colour Like most artists, I always loved painting and drawing. appear in their neighbourhood. My school-books were always full of comic strips There are a couple of experiences that stand out, and doodles, but I didn’t seriously consider making like the time I was painting a cabinet on Auckland’s a career out of art until I was 15. I remember when Karangahape Road and spent the day surrounded by my mum’s friend saw one of the paintings I had done various ‘ladies of the night’ offering artistic feedback. for School Certificate Art and offered to buy it. This Then there was the time I forgot to wear my high-vis inspired me to hang some pieces in the Fat Dog Cafe in vest and had the police called on me. Rotorua. They all sold, and after that I was hooked. Tricky question: what is your favourite How did you get involved with Chorus and its cabinet painting? cabinet art programme? It would probably be Piggy Stardust – it’s next to After I moved to Auckland, in 2007, I met a few guys the kindergarten both my children went to, and who were really into graffiti. I used to go out with them the guinea pig featured in the artwork lives at the and they would paint their graffiti pieces, and I would kindergarten. Then, less than a year after I painted paint weird characters next to them. I eventually it, David Bowie, who was the original inspiration started painting the characters by themselves. for the artwork, passed away, so that artwork really One night I really wanted to paint something, but I’d resonates with me. had a few beers and didn’t want to drive. So, I walked to our local dog park in Three Kings and, under the So, what’s next for you? light of the moon, painted a big ‘Grumpy Cat’ [the I’m still painting cabinets – they have helped open up a internet celebrity cat] on the water tower. People loved world of other artistic possibilities. I am now painting it. This grumpy feline looking down its nose at the dogs commercial murals and public artworks full-time, playing in the park. However, after four or five months, supporting my family through the work. And, as long someone else painted a big tag across the top, and then as I can keep doing that, well, I think the phrase that the whole wall was painted over. best sums it up is the old cliché: I’m living the dream.

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ABOVE: Grumpy Cat mural, located in the dog park at Three Kings, Auckland LEFT: Piggy Stardust, corner of View and Wynyard Roads, Mt Eden, Auckland FAR LEFT TOP: Noo Zillun, corner Fort Street and Jean Batten Place, Auckland FAR LEFT BOTTOM: The Modern Working Dog, outside ASB Showgrounds, Auckland

You can see more of the artist’s works at: paulwalsh.co.nz

2018 / Issue 7 26 Connectivity | Your home

ONLY CONNECT – BEYOND MOVIES AND GAMING Have you streamed the entire Netflix back catalogue or shot every Xbox Live baddie in sight? Are you wondering what else your fast broadband connection is good for? How about using it to turn your house into a smart home? Scott Bartley shows you how

FIRST, WHAT IS A SMART HOME? For many people, the idea of an internet-connected smart home is like something out of the realms of science fiction. However, the internet has given rise to an entire ecosystem of devices and services that can, without much fuss, add a Space Age layer of convenience and security to your home – and at almost any price point. Even if the thought of a fully connected home is a step too far, chances are there’s a gadget or two out there that can be genuinely useful to the right person. Areas like home security, entertainment and household chores are all ripe with opportunity. The companies building these gadgets know this, so it’s easy to find all manner of connected devices, ranging from security cameras, lights and streaming music players, through to barbeques, fridges and vacuum cleaners. All of these can be made to do your bidding through a mix of voice commands, artificial intelligence and good, if now rather old-fashioned, mobile apps.

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WHERE TO START – SMART benefits. With a Ring subscription you get automated convenience another. The SPEAKERS AND CAMERAS cloud recording. This means Ring Doorbell ability to turn lights on remotely while While it’s possible to pay someone will automatically upload video of anyone away is a good way of fooling the bad guys thousands of dollars to rig your home ringing your doorbell, or any other motion into thinking someone is at home. Lights like the bridge of the Starship Enterprise, detected, to the cloud. This means even if can also be dimmed and, if using the more connecting the parts of your house that it’s not possible to check the alerts it sends expensive coloured bulbs, lighting recipes actually matter is simple given the wide straightaway, it’s easy to go back later and can be thrown into the mix as well, to set range of connected gadgets available. As see what happened. the mood. long as there is good Wi-Fi and internet The upshot of all this is that the entire to connect to, most of these devices don’t system relies on having a fast internet Clean house the digital way need anything more than a power socket to connection backed by a strong Wi-Fi signal Robotic vacuum cleaners like Roomba install them. to get the best out of it. The system is, at tend to keep to themselves, handling most When it comes to home entertainment, heart, a private video-streaming service of the dirty work without any human input. the rise of smart speakers such as Amazon and that makes fast internet crucial. However, they still need the internet to Echo and Google Home – which are program cleaning schedules, and to receive connected to the internet 24/7 (and all but Feathering the digital nest alerts should they get themselves stuck, or useless without it) – have started to make While the Ring system tends to focus on if a wheel gets jammed. Sadly, humans will their mark. Not only can they be used to what’s happening outside the house, Nest still be needed to empty the dust catcher. stream music, podcasts and other audio, but cameras look inwards (although they do they can also double as a personal digital make an outdoor camera, as well). IF THIS, THEN THAT assistant operated by voice commands. Sadly, in New Zealand, Nest sells only Even though these examples are only a Home security provides another reason a small number of the products available small sample of the kind of connected for getting onboard with the connected to its American customers, but these devices available (we haven’t even touched home. The ability to keep an eye on the include a couple of nice indoor cameras, on barbecues, heat pump controls and house, both inside and out, from almost an outdoor camera and a smoke/carbon fridges), it’s easy to see how the internet anywhere using an internet-connected monoxide detector called Nest Protect. can make them all much more useful. security camera, is incredibly useful. Like Ring, the Nest cameras can detect They can become better still once they Options abound so there is no shortage motion and then send out a mobile all start talking to each other. This isn’t of choice, but two of the big names in the alert, so users can tune in to see what’s some Terminator-style doomsday scenario, business are Ring – makers of the Ring going on. However, Nest adds another, rather it’s a way of coaxing the various Video Doorbell system – and Google- smarter, layer on top that brings in facial gadgets from different manufacturers to owned Nest. Here is how they approach recognition too. work together. home security: All Nest’s smart processing is actually To reach this state of connected Zen, done in the cloud rather than in the device some prior research to ensure the various Ring my always-on digital bell itself. It does this by continually uploading gadgets being bought are capable of talking Paying from $199 to as much as $749 for a video from the Nest Cam to the internet, to one another, is necessary. doorbell sounds crazy at first, but there is where Nest software analyses and stores This is because there are competing more to the battery-powered Ring Video the video. That’s right, Nest cameras are standards, some of which aren’t very open Doorbell than chimes. The chocolate bar- constantly streaming live HD video (albeit (Apple Homekit gear, for example, is fairly sized base model sports a high-definition privately) to the internet. exclusive). In contrast, some products are video camera, wide-angle lens, night Needless to say, this is a bandwidth- designed to work with each other right vision, Wi-Fi, microphone and a speaker. intensive activity and Nest is the first out of the box (Nest cameras and Philips All of this makes it possible to answer a to say that for all this to work it needs a Hue lights, for example). However, a knock (or button push) at the door via a connection with a minimum upload speed better way is to check if a device supports mobile app, even while away from home. of 2Mbps. We would add that an internet something called IFTTT, which stands for In other words, as long as there is an plan that includes a decent monthly data If This, Then That. internet service available, it’s easy to tell a allocation is also necessary. All the devices mentioned above support courier where to leave a parcel, or even to IFTTT. This means that by downloading the hide from pesky salespeople trying to hock Light up remotely IFTTT mobile app, it’s possible to do things their wares. It’s also easy to pretend there Even lights work better with Wi-Fi these like have the Roomba pause in its cleaning is someone home using the Ring Doorbell. days, and Philips’ Hue kits are a perfect cycle if the Nest Cam sees the phone being You can add more than one doorbell example. An expandable, Wi-Fi connected used. Or, the app can turn the Hue lights on too, or even the Ring Floodlight camera to lighting system, it hooks into your home (or off) when someone enters (or leaves) a improve coverage around the house. network and makes it possible to turn the room. Some products work well together, lights on or off using a mobile app. This some don’t, but with some careful research Subscriber benefits sounds like the height of 21st century before purchasing, the possibilities are As is often the case these days, there is a laziness, but there are legitimate reasons endless. And everything is powered by fast

PHOTOGRAPH BY ROBIN HODGKINSON ROBIN BY PHOTOGRAPH subscription service that adds yet more to consider it – security being one, and broadband and home Wi-Fi.

2018 / Issue 7 28 Connectivity | Your home

SMART SPEAKERS – SO MUCH MORE THAN GOOD SOUND They can be the heart of your budding smart home and your willing digital assistant, writes Scott Bartley. However, there is a sting in the tail with the new AI-powered smart speakers

THE AGE OF the voice-activated, artificial Android mobile phones for years now, need to do a quick Google search. Now, intelligence-packed smart speaker has through its Google Assistant technology. imagine being able to simply ask. Or, with arrived. And, like it or not, this market is If you’ve ever tried an “OK, Google…” a little smart-home integration (more on only going to get bigger if the efforts of command on your phone, congratulations, this below), you can have the lights turn Google and Amazon are anything to go by. you’re ahead of the pack. Smart speakers on when you come home after work in the According to one report, the smart bundle this kind of functionality into a dark with arms full of bags and shopping. speaker segment – of which these two compact, all-in-one device designed to sit For people with disabilities, smart American tech giants own some 92 percent around the home waiting to attend to the speakers can be a life-changing addition of – is set to flourish. Current estimates whims of the humans that live there. to the home. of its worth range from US$2.7 billion to Of course, for the likes of Google a hefty US$11.8 billion, over the next five WHAT’S IN THE BOX? and Amazon, their value lies in all the years. And, as if to add an exclamation Out of the box, smart speakers tend to be usual areas from which these companies mark to this, Apple has joined the fray with used mainly for playing music, podcasts, famously profit – selling advertisements, a smart speaker of its own. To say that internet radio and audio-books. They are goods and services. smart speakers are all the rage is, quite also able to perform internet searches, clearly, a massive understatement. responding in kind once the appropriate PRIVACY PROBLEMS? So what’s the big deal with them search result has been found. One possible fly in the ointment is that then? What are they and why are they so The devices themselves range from smart speakers are always listening. important all of a sudden? Let’s start by proper grunty audiophile-level speakers That sounds a little George Orwell 1984. defining exactly what a smart speaker is. (check out Apple’s HomePod) down to However, they need to be able to do this to diminutive wee devices (think Amazon respond to their human overlords’ various WHAT IS A SMART SPEAKER? Echo Dot and Google Home Mini) which needs. The companies making the devices Technically, any standalone, internet- provide a basic speaker but are backed by say the microphones only send the audio connected, wireless speaker that accepts the same smarts as their bigger siblings. to the company servers once they hear voice commands can be called a smart Smart speakers depend entirely on the “wake word” (think “OK Google” or speaker. However, it’s the ones that the internet to work and as such come “Alexa,” for Amazon Echo). However, are powered by one of the artificial packed with a built-in Wi-Fi and Bluetooth there are genuine privacy concerns. Cory intelligences that are causing all the fuss. connection. From there, they will need Doctorow, of online tech magazine Boing These include speakers made by Google only a power socket or their own battery Boing, has called smart speakers the (Google Assistant) Amazon (Alexa) and, power to work. “normalisation of surveillance”. Certainly, to a lesser extent, Apple (Siri) as well as in a post-Facebook world, it can be Microsoft (Cortana – although, given WHAT’S THE BIG DEAL? difficult to know how much faith one can Microsoft still hasn’t officially launched a It’s the sheer convenience of them that’s put in these companies when it comes to New Zealand version of Cortana, it’s safe making these smart speakers so valuable protecting your private data. to say this is a non-starter in this country). to their owners. People seem to love the And even if privacy doesn’t factor These internet-powered digital assistants way they can get basic work done simply into your thinking, the whole “talking let people get whatever they want done by talking. to the house” carry-on isn’t going to be using voice commands. How often have you been in the middle to everyone’s taste. Nor is every Google The intelligence behind Google Home, of some task at home, your hands are full search you might want to make necessarily for instance, has been quietly infiltrating or covered in muck, and you realise you one you want to announce out loud.

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PICKING THE RIGHT SPEAKER Apple HomePod Moving swiftly on, and assuming such Apple has just the one smart speaker: the things aren’t a cause for concern, there HomePod. By all accounts, this device are untold choices for the potential smart produces some of the finest audio on the speaker buyer. While Google and Amazon market. Of course, it doesn’t play nicely make their own hardware, both allow, and, with other devices, so it helps to be fully indeed, encourage other speaker-makers immersed in the Apple universe if you want to build their own flavour of smart speaker to make the best use of it. Oh, and Apple and then load them up with the AI brains hasn’t decided when it will start selling the Google and Amazon can provide for them. HomePod in New Zealand. The story of For the user this provides a common our lives here. platform and consistency of experience, while still being able to choose the Sonos hardware that best suits the user’s needs. Sonos has a long history in the wireless, smart speaker business. However, until DO THEY PLAY WELL WITH OTHERS? very recently none of the company’s More than how it looks and sounds, speakers worked with Google Assistant or perhaps the most important consideration Amazon’s Alexa. Some DIY workarounds is how well a speaker will play with existing allowed for a little compatibility, but devices in the home. Unsurprisingly, nothing worked smoothly out of the box. Google Assistant works rather well with The brand-new, although, here it comes, Android phones and other Google products Amazon not yet available in New Zealand Sonos (like Chromecast), as does Alexa. Apple, Amazon is a prolific manufacturer of smart One changes all this – it supports both as ever, is a mixed bag when it comes to speakers and its Echo branded line has Amazon Alexa and Google Assistant. compatibility, but will obviously work grown to fill almost every home-audio niche better with iOS devices than any others. imaginable, though not all are available in GOING ‘FULL SMART HOME’ The point is, before jumping in and buying New Zealand. The original Amazon Echo Amazon and Google know there is value a smart speaker, do ensure it will actually still persists ($179) albeit now in its second in encouraging third-party vendors to work with everything else you have. Here’s generation. It’s now accompanied by a build devices that work with Alexa and a quick primer on some of what’s available: plethora of other speakers, some of which Google Assistant, so they produce an API even come with little screens. (application programming interface) to Google Home The $229 Echo Spot (which is now make the task easier. It’s these third-party The Google Home range of speakers available in New Zealand) is one such devices that transform a smart speaker includes three units of varying size – the device. About the size of an alarm clock from a fancy music player into a true Google Home, which looks something like a (incidentally, one of its uses), the Spot smart-home hub. small desk lamp; the tiny and inconspicuous has a 2.5-inch colour display that can be For example, throw in a set of smart Google Home Mini; and the larger, more used for video-calls, displaying weather lights such as the Philips Hue (get a three- powerful Google Home Max. While none updates or watching the news. Then bulb starter kit for around $280) along with of these are officially available in New there is the bare minimum $89 Echo Dot. a $199 Ring Video Doorbell or a $549 Nest Zealand, they can be bought from Australia Amazon clearly hopes we will all put one Cam IQ security camera and suddenly and also in some local stores as an import. of these in every room. it’s possible to have lights that turn on automatically as people enter a room.

HERE TO STAY Smart speakers look like they are here to stay – Amazon and Google will see to that. And, even if the thought of having a voice-controlled smart home makes you feel cold, there is no doubt that the ability to easily stream music around the home, without having to run wires everywhere or clutter up the place with bulky speaker systems, will be a drawcard in itself. As long as these companies take our privacy seriously, a smart speaker can make a great addition and will be the beating heart of any

PHOTOGRAPHS BY ROBIN HODGKINSON ROBIN BY PHOTOGRAPHS budding smart home.

2018 / Issue 7 30 Net safety | Online abuse

Online harm now

affects 10 IN APRIL, A CHRISTCHURCH feared for their physical safety teenager was ordered by a judge and 32 percent feared for the to delete her Facebook account physical safety of their families. percent of after sending “harmful” And we’re not talking messages to a 13-year-old girl about people disagreeing who later died in a suspected with someone else’s opinion. all Kiwis suicide. Also in April, Napier’s Amnesty International New mayor, Bill Dalton, quit Zealand campaigns manager Facebook messages at centre of Facebook following abusive Meg de Ronde says the survey Christchurch teen’s death, Napier’s comments. These stories have set a high threshold, defining propelled online abuse back harassment “in terms of threats mayor abused – these represent just into the news. of violence, threats of sexual a couple of the many thousands of But the effects of online assault and so on.” ‘toxic’ online messages and images abuse and harassment are “It’s definitely a big issue,” we now have to deal with, reports being felt much more widely says Netsafe’s CEO, Martin according to a recent Netsafe Cocker. “If 10 percent of the Heather Wright survey that showed one in three population are being affected, New Zealanders had received that’s a sizeable problem.” some form of unwanted Set up in 1998, Netsafe is communication over a funded by the government 12-month period. Around one- to assess and investigate third of these people – around non-criminal complaints 10 percent of the population about online bullying, – reported being unable to take harassment and abuse under part in their usual activities, the 2015 Harmful Digital including working, eating, Communications (HDC) sleeping or participating online, Act. Criminal complaints are as a result. handled by the police. For young New Zealanders, The act defines harmful this figure increases to one digital communications as in five receiving unwanted digital communications aimed harmful communications. at an individual which cause The Netsafe results echo “serious emotional distress” an Amnesty International and either has or could report that found one-third seriously breach one or more of of 500 Kiwi women surveyed 10 communications principles had experienced online abuse outlined in the act. These and harassment. Seventy-five principles include disclosing percent of these said it had sensitive personal facts; being affected their sleep, 49 percent threatening, intimidating 31

or menacing; making false allegations; and inciting someone to commit suicide. Each week, Netsafe receives around 50 reports of harmful digital communications. Cocker believes this is just the tip of the iceberg. “We know one in 10 New Zealanders is harmed by digital communication each year, which means there are hundreds of thousands of people being affected by online abuse and harassment,” he says. “There can be a perception that online communication doesn’t harm adults, or that it is an issue for a small minority. However, our research highlights the very real impact that online abuse can have on a person’s quality of life. For far too many New Zealanders, what is being said to or about them online is having a very real negative impact on their daily lives,” Cocker says. Jon Duffy, Trade Me “The culture of exchanges head of Trust and Safety online is so aggressive and toxic at times that people don’t self-evident in face-to-face dealings – you don’t want to end up a party to realise that if they are harming don’t need a piece of legislation that says a defamation action because we someone it is an offence in New you can’t be intimidating or rude in real have seen a comment and not Zealand,” he adds. life, but you do for the internet. I find that taken action.” That’s a view shared by Jon really, really interesting.” But Duffy also notes that Duffy, Trade Me’s head of As a content host, Trade Me has the HDC Act process could Trust and Safety, who notes obligations under the HDC Act and result in well-resourced Trade Me – which, with its 3.5 monitors the site, removing or editing or otherwise aggressive million subscribers, tends to content if necessary and regularly banning complainants shutting down be a good reflection of New users if they present a financial, emotional free speech on topics. Zealand in general – sees its or physical risk to other members. The “There is a real risk there, share of keyboard warriors company, whose disputes team handles and I think the courts, Netsafe emboldened by the anonymity about 300 complaints a week, also works and venues like Trade Me need of the internet. with the police if members are threatened. to be quite vigilant about that.” “The very existence of the Questions and answers, feedback Amnesty International, too, HDC Act supports this – that and the message boards are key areas has questions about the HDC discourse on the internet is monitored, with Duffy noting that the Act. In the wake of its survey, fundamentally different from message board is “its own magical world”. it consulted with other parties, discourse in real life, hence While it provides a wealth of information including domestic and sexual you need a specific piece of for site users, seemingly innocuous violence workers. legislation that only applies threads can descend into name calling, “The feedback was very to communication on the defamation and potentially harmful digital much that they wanted a review internet,” Duffy says. communications. of the legislation to see whether “Isn’t it weird that you need “We have to very actively monitor what all of the people that need kind of ‘rules of combat’ for goes on the message boards because we protection are being protected how you conduct yourself on don’t want people defamed. We want them and whether it was working as it the internet? Those rules are to have a pleasant experience and also we was intended,” de Ronde says.

2018 / Issue 7 32 Net safety | Online abuse

A request to the Minister But, Cocker says, New for Justice, Andrew Little, for Zealand has done more than a review was successful, she most other countries to prevent says, with Little saying this will online abuse. take place later this year. “Could more resources Of particular interest are be spent on online safety areas such as the cumulative and would that have a flow- effects of abuse. “The on effect to more positive legislation has been really good outcomes? Absolutely. for one-off, serious cases where “But if you were going to the person is known to the give the government a review, survivor, but it hasn’t been so you would score them higher effective that we can see where, than governments in other for instance, it might not be an countries at this stage.” individual tweet or Facebook While we have Netsafe, message but a number of Australia has a politically people attacking someone over appointed eSafety multiple days and multiple "People whose Commissioner, with formal posts,” de Ronde says. partners had shared powers to reprimand. Ireland Whether people in public- is also considering creating facing positions have the revenge porn has been such a position. same protection as private one of the primary “In general, the New Zealand individuals, and whether charges brought using government gives Netsafe quite the threshold for harm is a bit of flexibility, and for us appropriate, are also areas this legislation" that has been a very successful Amnesty International would model,” Cocker says. “But I like reviewed. Meg de Ronde can also see the benefits of the AMNESTY INTERNATIONAL In April, the Auckland High CAMPAIGNS DIRECTOR commissioner model.” Court overturned a district Multinationals such as court judgement that a man Facebook, Google and Twitter who posted explicit images have bases in Ireland, “so it of his ex-wife on Facebook, Revenge porn is a key focus for police may make sense to have a shouldn’t be convicted under in their criminal prosecutions under the stronger, more aggressive the HDC Act because there HDC Act. Official figures show police regulator in that country wasn’t enough evidence that prosecuted 176 cases in the first 18 months because they have jurisdiction harm was caused to the woman. under the act, the majority for revenge over the companies they would “The [district court] judge porn, with sentences of up to 11 months aggressively regulate.” had taken the interpretation of handed out. Cocker says all of the big harm in quite a narrow view,” While Cocker says the law treats revenge name players work “very de Ronde says. porn as the worst of HDC content, he constructively” with Netsafe. While initial debate around says all of the things Netsafe deals with “They do their best to comply the HDC Act was focused on on a day-to-day basis are “by and large with us, and it’s important technology and civil liberties, unnecessary communication”. to recognise that we have no with bullying of children a core Netsafe works with industry partners jurisdiction over them. reason for enacting the act, to get the offending content removed, “Organisations like de Ronde says in reality many as well as advising people about the ban, Facebook, Google and Twitter taking cases to Netsafe or the block and delete tools available, and are relatively young companies courts are people experiencing about other steps they can take. Talking who still have some learning to abuse in their partnerships. to the person who produced the offensive do in terms of how they create “What hadn’t been content and advising them of the law a trusted, safe environment for considered is that this would to “enable them to take remedial steps people to operate in. be an important piece of voluntarily” is also an option. “But, by and large, that is legislation for people who It doesn’t always work though. Around their objective, as much as it were in domestic partnerships. four percent of cases – often disputes in is ours. They want their users People whose partners had which harmful digital communication is to trust the environment, be shared revenge porn has been only one part – fail to get resolved, and the safe and return on a daily one of the primary charges offended party considers legal options. basis because they enjoy their brought using this legislation.” Few follow through to court, however. experience.”

thedownload.co.nz Rant | RWC 2019

RUGBY RIGHTS BATTLE FIRST SKIRMISH IN LOOMING FIBRE BROADCAST STRUGGLE Michael Wigley

SKY WON’T BE TOO RATTLED about losing the Rugby World However, as the Spark–TVNZ deal Cup (RWC) rights to Spark and TVNZ. These would have been a shows, footie followers without fast nice-to-have but are not critical for Sky. However, this is the thin internet will be left out in the cold when it end of a wedge when it comes to possible long-term broadcasting comes to RWC 2019. And plenty will still wins for fibre providers and retailers. Or not… not have fast internet come renewal time in Sky’s financial model – as with most Pay TV providers – is based the early 2020s. That’s a problem and there on annual revenues that flow from events taking place throughout is no easy solution for these rural rugby the year such as live All Black test matches, rather than one-off followers wanting to view live sports. You revenue spikes from events like the RWC and the Olympics. Indeed, can’t realistically broadcast over free-to-air Sky said as much when commenting on the Spark/TVNZ win. television just to these regions. So, Sky, or Sky also confirmed the critical role live sports rights play when another satellite provider, may still have Michael Wigley it said it had a “strong lock on the key sporting rights that are leverage because it can reach everyone. is a solicitor and heavily involved in significant drivers of subscription activity.” So far, regional New Zealand’s reaction telecommunications. These are the rights to live rugby test matches and cricket that around many areas not being able to view Disclosure: he acted for don’t expire until the early 2020s. Move that “strong lock” on to RWC games has been fairly muted, but the parties opposing fibre (and VDSL and, perhaps, 5G later on) and we can expect when the reality hits next year people will the Vodafone and Sky merger application consumers to be clamouring for fast internet connections so as to be more vocal. get premium live sports. This is the content many regulators say is Even if the broadcasting rights go to fibre key input content that can be used to get a strong market position and other fast internet services, much will and harm competition. depend on who gets these rights – and what Last year, the Commerce Commission said “the vast majority they must do to get them. of Sky subscribers watch Sky’s premium live sports content on Sky This issue is set to dominate the Sport.” Live sport dominates when it comes to why consumers buy telecoms industry in the coming years, and Pay TV services. If that content were provided over the internet this it will impact hugely on the revenues of all would result in a radical jump in fibre uptake. telcos, both network and retail.

2018 / Issue 7 Let’s address digital divides together To find out more, visit digitaldivides.nz

While New Zealand is considered one of the most digitally advanced nations in the world, through lack of education and resources, a significant minority of New Zealanders are being left behind. That’s why InternetNZ is calling for a target for New Zealand of universal access by 2020. We are working to reduce the effects of digital divides in New Zealand.

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