Kordia

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Kordia is a State-owned enterprise based in New Zealand that operates a national communications network and provides network feeds and broadcast services for the major television and radio networks in New Zealand.

Kordia network is primarily based on digital microwave technology, however the company also owns a fibre network running between Auckland, Wellington and Christchurch with redundant links and a further extension to Dunedin. Its transmission points are a legacy of the network that was created by the various incarnations of the New Zealand Government-owned broadcasters Radio New Zealand and Television New Zealand.

As well as use of licenced point-to-point microwave network links, Kordia also owns a variety of broadcast radio spectrum usage rights, including UHF frequencies suitable for television broadcast. Kordia also own and operate a point-to-multipoint CDMA-based network for lower speed wireless broadband access.

The name “Kordia” is derived from the latin word “accordia”, meaning “harmony”.

Contents

Background

Until November 2006, Kordia was called Broadcast Communications Limited (BCL). It was formed as a subsidiary of Television New Zealand Ltd (TVNZ) on 1 July 1989 after the creation of its parent State Owned Enterprise in 1988. In 2003 it was owned by Transmission Holdings Limited, a separate holding company owned by the New Zealand Government under the State Owned Enterprises Act.

BCLNZ (now named Kordia) was reputed to be one of the most profitable parts of Television New Zealand with a near monopoly on transmission high points suitable for network television broadcast in all the major centres of New Zealand. Kordia operates almost all transmission points for all national television networks in New Zealand, including TVNZ's TV1 and TV2, MediaWorks_NZ's TV3 and C4, Prime Television and Sky Network Television's UHF pay TV network, along with a number of smaller TV stations and major radio networks. Recent changes to the Telecommunications Act in 2001 mean Kordia's nearly 400 high sites are available for co-location (although they always were). This allows the introduction of other network operators' equipment into these strategic sites. In November 2006, BCL and THL changed their names to Kordia, with the motto "people and technology as one". Other THL companies are now called Kordia also.

Kordia competes with other operators of physical (layer 1) telecommunication network providers such as Telecom New Zealand, TelstraClear and Transpower New Zealand Limited (the national grid operator). Kordia is trialing DVB in New Zealand and Digital audio broadcasting in New Zealand and Australia.

In early 2007, Kordia announced that it had signed a distribution agreement with RoamAD for the distribution of RoamAD metro Wi-Fi networks throughout New Zealand.

On 2 July 2007, Kordia acquired Orcon internet.

On 7 September 2007, Kordia launched Kordia Metro WiFi, an unbundled open access network of Metro WiFi hotzones.

Orcon

Orcon Internet Limited (normally just Orcon) , is a newly state owned New Zealand Internet service provider. It is currently ranked as New Zealand's fourth largest ISP.

Orcon Internet was founded by Seeby Woodhouse who started a small business (Orcon Group Limited), while at university, providing computer advice and support, as well as selling early model cell phones and accessories. Before long, demand caused the business to expand services to include PC upgrade and repair services. The business remained focused on the local market on Auckland's North Shore. By 1996 the business had expanded both its range of products and its sphere of operations. It began distributing computer accessories and supplies to small business owners and home users throughout the Auckland region and to various other parts of New Zealand as required.

In 1997 Orcon Group commenced as an ISP with three dial-in 33.6k modems. This was a very small step in what was to prove an exciting path for the business. Through the start-up phase, the market focus was on the no frills end of the market, with pricing at around half the price of the cheapest competition, Orcon was aimed at more skilled and technically minded customers.

In 2002, Orcon became a major ISP in the residential market, a new web portal was launched and marketing initiatives were put in place to continue to grow the customer base that positive word of mouth had established.

Sale to Kordia

On 12 June 2007 Kordia, a state owned telecommunications company, announced its purchase of Orcon for NZ$24.3m.

Seeby Woodhouse, an 80% stakeholder stands to make $19.44 million from the deal, while business partner Mark McKay will pocket $4.86 million.

Competitors

Orcon operates in a highly competitive industry. Orcon's main competitors are Xtra and ihug as well as TelstraClear. All of these companies have large parent companies: Telecom, Vodafone and Telstra respectively. There is also growing competition from a few smaller ISPs. With the implementation of local loop unbundling, barriers to competition will be removed and Orcon will be able to compete on a more level playing field against its incumbent competitors.

Criticism

A lot of criticism was laid at the feet of Slingshot, Orcon and Vodafone due to their opposition to Telecoms 1.4 billion dollar investment which would upgrade aspects of the network, bringing more cabinets to improve New Zealands broadband.[1] This was despite reports over a long duration stating that this was what was planned. [2] [3] [4]

  • 4 February 2008 - Kordia came under fire for performing contract work in Myanmar, where it is understood they helped install cell sites. Myanmar has been in the news recently for the brutal crackdown on pro-democracy protests. Prime Minister Helen Clark defended the state owned company stating that the work would be aiding democracy. Critics, such as the National Party have been quick to point out that the technology would most likely allow for more effective suppression of opponents. (manhinli blog article, TVNZ article)

Local loop unbundling (LLU)

Orcon issued a press release on 9 August 2007 stating that they had become the "first 100% kiwi owned telecommunications provider" to install equipment in the first unbundled Telecom exchange at Ponsonby. On 30 August 2007, Orcon released an additional press release to annouce that they had successfully connected a trial customer at ADSL2+ speeds to their DSLAM via LLU.

Orcon has been a key participant in recent years in New Zealand's LLU process - which is a rapid u-turn from past public statements by former chief executive Seeby Woodhouse. A Computerworld article from 2005 describing a joint letter by several ISPs to the Commerce Commission quotes Woodhouse as saying he didn't sign the letter because he didn't agree with the request for local loop unbundling. With LLU, Woodhouse says, only the bigger players such as TelstraClear, Ihug and possibly CallPlus could afford to put their own equipment into the exchanges.

On 13 March 2008, Orcon officially launched their LLU product, called the 'Orcon+ Network' which spans 5 exchanges. (Orcon+ Network, Geekzone forum thread)

Services provided by Kordia

Plans available


External links

Retrieved from "http://www.nzconnection.net/Kordia#Orcon"
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