Game Of Thrones Questions (spoiler alert)

Warning! Mega spoiler alert! seriously, if you haven’t finished season 5 yet, stop reading this. With another GOT season over, one that was again as full of surprises as it was with people getting killed, I have had some time to digest it and try and make some sense of it all. But I can’t. …

Why did Vodafone acquire Worldxchange?

Vodafone, the second biggest Telco in the NZ market, has followed on from their purchase of TelstraClear with a smaller, but similar, move in acquiring Worldxchange (WxC). So what was Vodafone’s motivation here? Vodafone have committed to move to Broadsoft, a vendor that WxC works with and knows well. This brings key knowledge in-house and …

Telcos and ISPs adding value through diversification

With the launch of Spark’s app store last week, the drive for Internet Service Providers/Telcos to find new sources of revenue was once again on display. The idea of an app store is not new – I know Amazon Web Services and Namecheap are already offering the same type of service, but it is a …

Chorus has a weak UFB channel strategy

It’s not that Chorus has a poor channel partner strategy, it’s more that it doesn’t appear to exist. Quick background. Chorus can’t sell services directly to end users and instead, it must sell wholesale services to retail service providers (RSPs) who in turn sell retail services to end users. This model is locked in under …

How to calculate the purchase price of an ISP

Callplus recently sold for 5.6 times EBITDA, Orcon was sold for $38m in 2013 to Warren Hurst and some private investors at a point where it was earning approximately $80m in revenue, but (I am told) was running at a loss. Callplus then picked Orcon up for approximately $30m in 2014. FX was bought for …

DTS network design update

This post is intended to give our clients and channel partners an update on our network coverage, sorry if it isn’t the most compelling post we have put out. In recent times we have significantly increased our access to tier one providers across New Zealand. Our basic goal is to never find ourselves unable to …

M2 buys CallPlus – smart move

Big news today as we learned that CallPlus, New Zealand’s third largest ISP (or group of ISP’s) has been purchased by M2 Group for $250 million. M2 has actually been operating in NZ for a few years, but few people likely know that. They have few staff, little infrastructure, no UFB interconnects and target SME’s …

Working from home – for and against

The industry I work within has created an environment where working from home is now an option for many people, but what are the positives/negatives of taking up that option? DTS has been around for 13 years, and for the first 12 of those we never really allowed staff to work from home. On the …

2degrees isn’t a challenger brand in wholesale market

In reading the press today around the acquisition of Snap by 2degrees, I saw the term “challenger brand” thrown around a lot, and I found myself wishing that 2degrees had sought to be a challenger in the wholesale business market. It is no secret that they have struggled in the business space and that was …

How to make money as an ISP

Whether it is in Australia or New Zealand, recent changes to the telecommunications landscape have reduced margins on almost every product/service that the average ISP/Telco sells. Voice is all about call volumes, data is cheap, and the market is savvy. This fairly quick drop in margin, which has essentially taken place over a 24 month …