The Competition
An overview of major competitors
As a wholesale telecommunications provider, Araneo falls into a small niche. In terms of the particular types of services offered, no other business in New Zealand can compete. The following organizations can deliver similar services to end users, and thus must be considered competition.
Wired Country offer a wholesale wireless service based on 3.5GHz licensed spectrum radio. This service is available in Auckland and Hamilton. Service is asymmetric, with downloads at 10x faster than upload. Average delivery speed is 256kbps, with max speed of 5mbps. Wired Country is the closest competitor to Araneo, as both their product and their business model are close to Araneo.
Broadcast Communications Limited (BCL) offer a wholesale wireless service based on 2GHz licensed radio spectrum. This service is available in rural areas and was initially rolled out in support of Fontera on behalf of Telecom NZ. The Extend product is suitable for low-end connections, and has a typical speed of 256/64 with a maximum speed of 512/128. Extend has a similar business model to Araneo but a very different level of service, and was never meant to compete in the population centers where Araneo is focused.
NZWireless is a wireless ISP serving Auckland and Wellington. They use 2.4GHz WiFi to deliver service to their customers. Residential packages start at $50/month, with business packages reportedly being sold at up to $400/month. NZWireless use Orcon for their Internet connection, who in turn rely solely upon Telecom New Zealand for connectivity.
Compass Communications have recently introduced wireless service into ten cities in New Zealand. This service is based on Trango Broadband DSSS radios and is offered at speeds of between 256kbps and 2mbps. Advertised packages sell data-capped plans of up to 5GB/month. Compass is probably in the best position to compete for Araneo customers, but might lack the sales force necessary to convert on their investment.
Telecom New Zealand and Telstra, the two incumbent telecommunications companies in New Zealand, both offer high-end microwave service at levels matching and exceeding those currently operated by Araneo, but at costing of 10-20x higher.