Quicksilver sees exciting times ahead

Quicksilver's Matthew Hobbs says services not even imagined today will be available in the next two years. Picture / Richard Robinson

Matthew Hobbs, managing director of internet service provider Quick-silver, had a spring in his step yesterday - happy for once not to be bemoaning the state of the industry.

"It does seem to have been for the last six months or year whenever we put out a press release or whenever I'm interviewed it's to complain about this or Telecom's not doing that," he said. "It's nice to have a positive spin on something."

Hobbs was reflecting on news that the Government is to break open Telecom's monopoly on its lines into people's homes - unbundling the local loop.

"It's going to make for some exciting times," he said.

Other providers will now be able to install equipment in Telecom's telephone exchanges and supply their own products and services.

"In two years there will be products and services available that we probably can't even imagine today."

Quicksilver will be reviewing its strategy but one area in which it may push for a competitive distinction is voice over internet protocol (VoIP) technology - using an internet connection to make telephone calls.

The company has more than 10,000 internet and phone service customers nationwide and Hobbs said it had begun testing VoIP services.

"The technology of providing VoIP and the quality that it creates in terms of the calls is now getting to the point where it can be made into a commercially available product."

An additional requirement for Telecom to split its phone and broadband services from each other - known as naked DSL - would help ISPs looking to provide such services.

"If you're buying VoIP over your broadband service, do you need a local phone line?"

Hobbs said the unbundling of the local loop would be welcome news for internet providers who had been struggling to make a buck out of broadband.

"What it does do...is it turns that light on at the end of the tunnel for ISPs who've been saying, 'Broadband - I have to do it but it's not that profitable'."

This tunnel might prove to be a long one with significant benefits probably not realised for 18 months to two years, Hobbs said.

During this time, however, market share would become increasingly important with more advertising, competition and loss-leading activity.

"From a Quicksilver perspective, we've not thrashed the broadband product as much as we could have because economically it just doesn't make as much sense."

The changes announced this week did not exceed Hobbs' hopes but did exceed his expectations, although he felt it was naive to think Telecom would not fight.