Is the Aussie ISP a threatened species under NBN regime?

Andrew Khoo, Solutions Architect at AmaySIM spoke at AusNOG in Melbourne last week and explained that Australian ISPs are experiencing high levels of churn and reduced margins as the NBN is rolled out across Australia. Especially for ISPs outside of the “big 4” who don’t have the capacity to connect directly to all 121 NBN inter-connect points and are forced to buy the NBN service through an intermediary.

This is very similar to the NZ situation as the local government rolls out the UFB (Ultrafast Broadband Network) to around 87% of NZ premises. While the NZ UFB has a much lower barrier to entry for smaller ISPs, there is still enormous pressure on the small and mid-tier NZ ISPs from the large ISPs who offer multifaceted services.

Those multifaceted services include mobile and power being offered by a traditional telco (Slingshot), a Vocus brand and internet service being offered by electricity generators (Trustpower). These are all situations where cross-subsidization could occur between different services giving the large ISP an advantage over the smaller operator.

In both NZ & Australia, the fibre rollout has led to a land grab by ISPs as they take advantage of customer churn, driven by the awareness of new services available over the fibre networks not available on the copper networks such as high-resolution video streaming and multi-subscriber video streaming.

The NZ ISP market leads Australia by several years, so it is simple for Australian ISPs to see their future by looking across the Tasman to their NZ peers. There is still room for ISPs in Australia to bring other services into the mix (such as energy retailing) which will hit ISPs hard who are already struggling due to low margins and no significant point of difference from their competition.

ISPs selling over NBN need to evolve too rapidly to avoid extinction.  The quote that comes to mind is from Korean business theorist, W. Chan Kim who said in his Blue Ocean Strategy book, “The only way to beat the competition is to stop trying to beat the competition.” This is usually interpreted as instead of trying to beat the competition, do something different; precisely what the NZ ISPs who are crossing over into electricity resale are doing.

New Zealand ISPs are differentiating by adding related services to their internet service. Stuff Fibre (a one-year-old fibre ISP) has found good traction offering a parental controls service to their customers. This has immediate appeal to families with school-age children and provides a tangible point of difference from their competitors who talk about benefits such as internet speed and price.

Instead of competing based on price, speed and data they provide the end user with a point of difference that addresses a key concern in every family home with school-age children, how do we manage screen time?  

Talk to any parent in Australia, and you’ll know their kids see their device as an extension of themselves, as digital natives, and use the demands of homework to justify being online 24/7. They’ll tell you their teens stay up too late chatting with their friends, and this causes health concerns and issues with being tired at school.

We accept the Internet has more pro’s than con’s but have you ever thought about how helping your end users deal with a major breakdown will enhance your offer and improve your financial results?

Read More – Value Added Services Enhance ISP Growth

Bypass strengthens team to continue international expansion

Manish Arora has been appointed as VP Engineering – South Asia. Manish’s appointment will provide local operational support for Bypass’ customers in India, Nepal and Bangladesh and pre-sales technical leadership for our partners in developing markets.

“What attracted me to working with Bypass is their focus to differentiate the data connection whether on fixed line or mobile with latest SDN and NFV technology without compromising the user experience”, comments Manish.

This new appointment is due to the results of the successful partnership between Bypass and Ekaga Futuristics, lead by Harkaran Sachdev, which has delivered financial results to justify this investment.

Shane Hobson has been appointed as Territory Manager – NZ and Pacific Islands. Shane has been appointed as Territory Manager to support Bypass’ New Zealand customers and help educate the Pacific Island ISPs about kid safe Internet and workplace productivity.

Bypass is also pleased to announce the appointment of global distribution specialist Comtec to represent Bypass in Qatar, UAE, Hong Kong and the UK markets.

“We are delighted to be working with Bypass because their unique network solutions are increasingly relevant to our carrier clients in the Middle East, Hong Kong and the UK. Their responsiveness and flexibility coupled with Comtec’s local presence in these markets have proved to be a formidable team”, commented John Buck, Comtec’s Managing Director of International Operations, who is based in the UAE.

“Comtec has already proven to-be a valuable strategic partner in the Middle East. Their local knowledge, executive relationships and willingness to jointly invest in market development is showing early signs of success. We’re working collaboratively with them to lead a bid to deploy Bypass’ new gaming acceleration and kid safe platforms with a leading operator.” says Matthew Jackson.

Bypass has also been working with the NZTE, utilising the Beachheads programme to create local strategic relationships. NZTE has helped with introductions and advice for India, Europe, the Pacific Islands and Hong Kong.

About Bypass

Bypass creates technology for broadband marketing teams to differentiate their brand and increase revenue. Bypass provides filtering services which keep kids safe online and helps telecommunications service providers meet industry regulated compliance requirements.

About Comtec

Established in the UK in 1978 Comtec has grown organically and by acquisition to become the UK’s leading supplier of telecoms, datacoms and audio visual equipment and services.

About Ekaga

Ekaga Futuristics Private Limited has been setup to address the gap which withholds the latest global innovators to enter into the South Asian market.Ekaga brings in Service Innovation to help such global start-ups enter the market.



ISPAI Presentation Kid Safe Internet

Bypass was asked to present about GeoLocation IP issues in Mumbai at SANOG28. We also had the opportunity to discuss some research about kid-safe Internet at the general meeting of ISPAI (Internet Services Providers Association of India) and learn more about India’s goals and challenges.


India has some major targets; to grow to 600,000 Internet users by 2020, with 250,000 fibre households & ubiquitous wifi to cover regional towns, rural citizens. The Internet for all & Internet for good is India’s goal. There are some significant barriers that will prevent this uptake. In New Zealand, if you wanted to offer a broadband service in the 90’s you applied for Project Probe funding from the Minister or more likely, just got on with building an unlicensed band network using 2.4 and 5.8 wireless gear.

In India, it is likely there will be an additional licence and registration process for regional wireless network operators. So why is this an issue, well it’s not just this, to get a mobile SIM you also have a registration process which requires a photo, passport and proof of location – many Indian citizens don’t have evidence of address. To set up P2P VPN for a business client, there another licence. These barriers make it more difficult to innovate and increase the burden of cost which is ultimately borne by the end user. This restriction decreases uptake and makes it harder for India to reach its goals.

The question I have to ask is – how much of this compliance is driven by incumbent lobbying to restrict market growth and reduce the impact of POTS revenue decline, how much is motivated by the fear of terrorism and how much is driven by top-down government control of policy. I suspect all of the above.

India is a market where you’ll see people regularly use two mobile phones to reduce cost as RCOM is known for moderate voice calling rates and Idea Cellular for low data fees. Price is everything in an emerging market where monthly income is low. I agree that the threat due to historical land challenges between neighbouring territories is real, but what I witnessed was a range of security measures. Therefore, I question the current effectiveness. In the five-star hotel where SANOG28 was hosted every car undercarriage is checked for explosives, and they had uniformed guards who saluted our entry but passed us through without too much fuss. In direct contrast the security in the western line station was the opposite, the metal detectors worked, but were not monitored; the guard was sleeping at their desks in the heat. There were only a small number metal detectors, certainly not enough to process the number of people passing through on a Sunday, let alone a work day where ten million people pass through every weekday morning.

For citizens, safety seemed far from a concern; I saw people hanging out the open door of trains which were passing mere centimetres from each other at high speed. Quite simply; are the measures to monitor and block access justified based on safety when WhatsApp encryption and Tor browsers with webRTC remove the ability for any telco, ISP or government to intercept communications?

To me, Mumbai is beautiful with its orderly chaos. Many miles away I know the approach we take Asia Pac – where privately-held internet companies are consumer advocates is different. Over time our goal is to help those in India see how the approach New Zealand has taken can benefit the telco, the consumer and the Internet. Ultimately this will assist the industry to reach their uptake goal sooner, which will raise the standard of living. In the short term, we’ll be helping address their compliance needs as operators in India face the same global challenges; consolidation of telco operators, explosive data growth, significant capital investment for 4G upgrades occurring Pan India and new challengers entering the market to disrupt. As the sector evolves in India we’re focused on ensuring our scalable DoT compliance platform addresses these challenges, and we graciously thank ISPAI and SANOG organising committee for the opportunity to be involved and host SANOG28.

‘Disruptive Behavior: How breaking DNS in New Zealand changed a market’

Kid Safe Research ISPAI Presentation

Thanks to SANOG

SANOG28 Mumbai Bypass Kid Safe Internet

Thanks to ISPAI


TransportMumbaiCablingMumbai2016-07-31 15.58.39MumbaiCentralTrains

Having a ‘National’ impact – BNSL’s commercial director comment’s on the recent views from the Minister of Telecommunications about Global Mode.

The New Zealand Minister for Telecommunications Amy Adams has had Global Mode on her radar the last few weeks. As reported by 3News she made the point at the Nethui South conference in Christchurch commenting that the sector needs to evolve.

Synergies between communications and broadcasting make it a good move to have one minister responsible for both. As she looks towards 2020, the Minister has called for a review of the Telecommunications Act.  BNSL was invited to be part of the first workshops jointly run by Internet NZ and NZ’s Ministry of Business, Innovation and Employment (MBIE). The workshops included corporate representatives from the incumbent telecommunications and broadcasters, companies from the start-up ecosystem and industry respected legal representatives. We valued the opportunity to be involved in this multi-stakeholder cooperative approach to the policy development processes.

For a telecommunication review what was interesting was infrastructure was NOT a large topic of debate. NZ has learnt the lessons from the Australian NBN and has a good plan in place to get national fibre coverage in place.

The topic of conversation surrounded the digital economy, the promise of high-speed internet isn’t faster downloads, it’s better access to education, online healthcare and e-commerce opportunities.

Confirming the views shared by the industry just a few weeks after her comments at NetHui the honourable Minister Amy Adams was speaking with TechDay about her plans for this term, UFB and why she lobbied for the broadcasting portfolio.

Having the two portfolios allows the Minister to drive the changes she believes will be necessary as the two platforms continue to converge – something she says is a key priority for her going forward.

Adams says while government shouldn’t dictate how business models develop; it needs to ensure there is flexibility in those models and customer protection, and not ‘ridiculous levels of bureaucracy’.

“We’re moving into a world where geo-location seems a bit fictional, and people don’t understand why they can’t access what they want to” – says Adams.

When we started Global Mode®, our aim was to provide consumers with a reason to upgrade to high-speed Internet. As UFB is passing 10% uptake and on target, we’re shifting our focus slightly.

Our goals for 2015 will be to promote and enable the cross-border delivery of services, protect the global free flow of information and enable an open, & distributed and interconnected nature of the Internet.

In our view, to enable the digital economy, legislation must provide a platform for a flexible commercial environment which empowers companies to adapt rapidly to constant change, with policies guided by global economic growth.

The global Internet is a threat to traditional business models, but it also provides an amazing opportunity  if we can create a society that leverages the best New Zealand has offer, delivered online and exported.

In less than a year through unmet consumer demand & increased market awareness, BNSL has become the largest wholesale provider of performance geo-unblocking DNS services anywhere in the world. By creating a political environment which fosters transparency, fair processes, and accountability and effective and proactive approach to privacy protection at a global level the future can only be bright. New Zealand will be a world leader in the digital economy; we’ve already proven it.