BEYOND THE NETFLIX EFFECT
UFB IS NOW USED BY 20 PERCENT OF NEW ZEALAND BUSINESSES AND HOMES. BUT IT’S THE UPTAKE OF FAST FIBRE AND VIDEO FOR BUSINESS PURPOSES THAT PROVIDES THE MOST EXCITING GLIMPSE OF WHAT THE FUTURE HOLDS.
While faster broadband is helping satisfy New Zealanders’ soaring demand for online streaming services such as Netflix, it has also become a vital tool in transforming Kiwi businesses and working lives, creating a competitive edge and greater opportunities.
Without a doubt, the roll out of faster broadband is one of New Zealand’s largest ever civil engineering infrastructure projects. And, demand is growing beyond expectations according to data from Chorus, which is rolling out faster broadband to 23 towns and cities.
Chorus network strategy manager Kurt Rodgers says that while in 2012 retail service providers found it tough to get businesses and homes to connect to fibre, now the challenge is how to meet the boom.
“The total New Zealand fibre connections grew 135 percent in 2015. That means it is now used by 20 percent of businesses and homes,” he says.
Indeed, New Zealand has the third-fastest fibre growth in the OECD.
Rodgers says data usage has also soared – well above Chorus’s anticipated long-term historical growth trend of a 50 percent increase per annum, with figures for the past 12 months reaching closer to 100 percent.
And data consumption will continue to surge into the future as business – and every level of society – taps into the wealth of opportunity offered by new tech advances such as 360-degree cameras, augmented and virtual reality, 4K TV (aka ultra-high definition TV), and high dynamic range video (where colours are richer and more varied).
UFB-enabled video is already delivering significant advantage as a tool for Kiwi businesses, and in the least expected places!
Take the Karaka yearling auctions broadcast live around the world via UFB link. As each horse comes into the sale arena, ringside cameras screen to potential bidders as far afield as Asia and the Middle East on a smartphone or tablet; who then instruct bidders in New Zealand.
In one auction last year, there were more than 180,000 remote viewers over six days of sales, involving 12 terabytes of data; with over $90 million-worth of horses changing hands.
UFB-enabled video is also enabling innovative start-ups to service clients, pitch for business and train staff on the other side of the world.
For The Instillery, a cloud-based network and app service provider, video (or video-in-video) and associated uses are the driving force behind 50 percent of the UFB connections their clients sign up to. CEO Mike Jenkins says clients are using video as a way to differentiate themselves from their competitors, accelerate decision making, communicate core messages and facilitate business in a global marketplace.
The Instillery uses video collaboration for marketing and product launches, enabling it to support events worldwide – often pitching by video to potential partners who then represent them in their market. And video is important to training and enablement for the company’s geographically dispersed team and clients using video calls or webinars, while providing real-time feedback to shape product development.
SECURITY AND CONNECTIONS
High-definition video is also delivering better security and connecting businesses in isolated locations. New Plymouth retail pharmacist Nai Yeat uses HD security footage to protect him, his staff safe, and his stock – which is high-risk given the large quantities of drugs stored on site.
“I’m always concerned for the safety of my staff, and aware of issues around theft of stock,” says Nai Yeat. “As soon as UFB was available in New Plymouth I got my Bell Block pharmacy connected up, and I have installed HD security cameras.
“If something were to happen, I have good quality footage which I could give to the police, and with the pictures streamed directly to the cloud, there’s no on-site storage box that an intruder could damage to avoid recognition.”
He can also download all the footage to his smartphone. And as UFB rolls out to other areas in Taranaki he plans to link all the pharmacies in the network with video connections, so staff can contact each other.
A pleasant surprise has been that it’s much cheaper with his Bell Block package providing three phone lines for $50 a month, compared to another location at $390 a month.
Video is also playing an important part in the major growth plans of frozen dessert manufacturer and exporter Florentines Patisserie.
Starting 20 years ago with one patisserie in Tauranga, and three staff, making premium cakes and desserts in the middle of the night, as demand grew they started freezing and wholesaling to cafes, restaurants, hotels, caterers and other food outlets.
Now with 40 staff making up to 3,000 cakes a day they’re exporting to Australia, Tahiti, the Pacific Islands and the Middle East. Managing director Gavin Knight says fast broadband and video is underpinning their growth with their goal for 2016 to double turnover.
“Video meetings – with reps on the road and customers – are far better than talking on the phone, and save a lot of time and money in terms of travel,” he says.
For example, they might show clients in Australia samples of a new product being developed and talk about the look and texture, or demonstrate how a dessert prototype was damaged in transit and discuss modifying the design.
“Having a fast broadband connection means we can share big documents or design files, and everyone can be looking at them on screen at the same time.”
Video conferencing also means other staff members, such as the Tauranga product development teams, can take part in discussions with customers, without the cost and time of travel. Video and broadband are also driving a major process improvement project for the factory with software delivering instant or live data and KPI reporting.
“And, putting video cameras in the factory means we can look for continuous process improvements. Our plant is running 20 hours a day, so management will be able to ‘see’ what’s going on in the production process, both from the once and from home,” says Knight.
“In the future I can imagine using the technology to give virtual tours of the factory for overseas customers. They could watch their desserts being made and even ask questions of people on the floor.”
Indeed, these few innovators provide just a glimpse of what the future holds for business with the use of fast fibre and video. But for certain it’s changing not only to how we do business, but how we teach, deliver healthcare and run our country.