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Market Analysis: Opportunities

Opportunities that could impact Araneo in the marketplace.

While Telecom has little interest in fixed wireless for true broadband access, Telstra has tried wireless a number of times in the past with little success. If shown a viable business that provides wholesale wireless circuits, it may attract their attention. They have a regular business of providing high-end links via licensed microwave - installations that generally cost in the range of $50,000 to install, and are expected to last ten years or more, as a stop-gap until end users have fibre delivered eventually. Araneo may be a way for Telstra to get to such customers at a significantly lower cost.

Vector should be made aware of our presence. They have a nation-wide fibre network which is largely idle. While currently absorbed in a merger and restructuring, they will eventually come out as a diversified infrastructure company with little in the way of wireless. We should position Araneo as an attractive asset for Vector.

We have a very strong case when it comes to competing with ISPs deploying their own systems, and the ability to deliver anywhere in the country will likely reduce such ISP self-deployments drastically. In fact some ISPs are abandoning in-place off-the-shelf wireless systems in favor of wholesale JetStream products from Telecom, due to their inability to manage and provide quality connections for their wireless customers.

BCL could potentially be a partner of Araneo. With unfettered access to their tremendous infrastructure and existing nationwide IP backbone, Araneo could have a platform for rapid expansion. BCL are committed to being a wholesale wireless provider, and so far have made many mis-steps. We have had contact in the past with BCL in regards to tower issues, and will likely colocate a system with them in Otahoua, Masterton, which will give them a good idea of what we are capable of.

TeamTalk is a provider of mobile radio formed as a spin-off of BCL several years ago. They aim to be a provider of voice services via high-frequency, non line-of-sight radio. They also have several products in the fixed wireless space, catering to the security and monitoring communities. Providing high-speed broadband would open up their product range and would be complimentary to their security offerings. They have a great deal of infrastructure spread around the country and have several thousand licenses for radio communications in New Zealand. They are also a local company based in Wellington. One of their founding members is a customer.