Orcon Internet Limited
Encyclopedia
Orcon Internet Limited (normally just Orcon), is a state-owned
New Zealand
telecommunications company. It is currently New Zealand's fourth largest ISP.
, 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.
On 12 June 2007, Kordia, a state owned telecommunications company, purchased Orcon for NZ$24.3m, effectively nationalizing it.
Seeby Woodhouse, an 80% stakeholder made $19.44 million from the deal, while business partner Mark McKay pocketed $4.86 million.
. There is also some competition from a few smaller ISPs.
. On 30 August 2007, Orcon released an additional press release to announce that they had successfully connected a trial customer at ADSL2+ speeds to their DSLAM via LLU. In March 2008 Orcon launched their ADSL2+ service in parts of Auckland, becoming the first ISP to commercially provide ADSL2+ in New Zealand.
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 (Now Vodafone) and possibly CallPlus
(Slingshot) could afford to put their own equipment into the exchanges.
State-Owned Enterprises of New Zealand
State-owned enterprises in New Zealand are registered companies listed under Schedules 1 and 2 of the State-Owned Enterprises Act 1986...
New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
telecommunications company. It is currently New Zealand's fourth largest ISP.
History
Orcon Internet was founded by Seeby Woodhouse who started a small business (Orcon Group Limited), while at universityUniversity
A university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is an organisation that provides both undergraduate education and postgraduate education...
, 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
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
'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.
On 12 June 2007, Kordia, a state owned telecommunications company, purchased Orcon for NZ$24.3m, effectively nationalizing it.
Seeby Woodhouse, an 80% stakeholder made $19.44 million from the deal, while business partner Mark McKay pocketed $4.86 million.
Competitors
Orcon operates in the New Zealand telecommunications industry. Orcon's main competitors are Telecom, Telstra Clear and VodafoneVodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
. There is also some competition from a few smaller ISPs.
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 PonsonbyPonsonby
Ponsonby is a surname which may refer to:*Arthur Ponsonby, 1st Baron Ponsonby of Shulbrede was a British politician, writer, and social activist...
. On 30 August 2007, Orcon released an additional press release to announce that they had successfully connected a trial customer at ADSL2+ speeds to their DSLAM via LLU. In March 2008 Orcon launched their ADSL2+ service in parts of Auckland, becoming the first ISP to commercially provide ADSL2+ in New Zealand.
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
Commerce Commission
The Commerce Commission is a New Zealand government agency charged with enforcing legislation that promotes competition in the country's markets and prohibits misleading and deceptive conduct by traders...
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 (Now Vodafone) and possibly CallPlus
CallPlus
CallPlus is a New Zealand telecommunications company, parent of internet service provider Slingshot. It provides voice and data communication services to business customers. CallPlus is the fourth-largest telecommunications company in New Zealand, with revenues of over NZ$100 million .Annette...
(Slingshot) could afford to put their own equipment into the exchanges.
See also
- Broadband Internet Access (New Zealand)