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Appendix 2: Internet Access


This Document is Archived


E-Commerce: A Guide for New Zealand Business

[ Last Updated 15 December 2005 ]


What Sort and How Much?

Individuals and companies wanting Internet access services have a range of options available. They vary considerably in terms of service, quality, and price.

At one end of the range are a number of free dial-up Internet Service Providers. They provide a basic level of access at no cost.

For a company intending to engage in a substantial amount of e-commerce involving high bandwidth content, a specialised solution is required at the other end of the range. An example would be a dedicated leased line to company premises with a certain capacity (e.g. 20 Mbps) with the Web site professionally hosted. The variables to consider are:

  • price
  • type of connection (dial-up, instant, dedicated)
  • support service
  • ancillary services available (Web site hosting, intranet/extranet provision, domain name services)
  • download speed (the speed that information travels to you)
  • upload speed (the speed of information sent by you).

The types of service available are listed below. Free dial-up Internet There are several Internet Service Providers that provide a dial-up service to access the World Wide Web and e-mail for free. These operators in most cases charge for helpdesk support, cannot guarantee access at peak times, and do not provide Web site hosting. Speeds vary considerably, but may be slow at peak times. Most free ISPs are only available in major cities and provincial centres. A list of free ISPs is available at: www.netguide.co.nz/isp_directory/free_isp/free_isp.php3

Note that free Web sites can be established through a number of overseas free Web site services such as Tripod (www.tripod.lycos.com) and Geocities (geocities.yahoo.com). Typically such services do not allow commercial activity.

Dial-Up Internet

This is the most commonly used service for individuals, and for small businesses with e-mail and a Web site. A wide range of operators exist providing national and regional service, most offering Web site hosting (some included in the monthly access fee) and helpdesk services.

At the time of writing (October 2000), prices range from just over $1 for an hour through to $25 for unlimited monthly access. Access speeds will depend on the time of day and the landline to the exchange but will vary from 56 kbps-9.6 kbps download speeds (average speeds are usually between 36 and 14.4 kbps), with upload speeds typically half that rate.

The service is usually more reliable than free ISPs and it is possible for a small business to have a Web site and e-mail administered through a dial-up ISP, though it will not have a dedicated onsite connection.

A list of nationally available dial-up ISPs is available at: www.netguide.co.nz/isp_directory/national_isp/nat_isp_dir.php3

ISDN: Integrated Services Digital Network

ISDN allows a customer to have a 64kbps Internet circuit and telephone/fax line at once, or a dial-up connection at speeds of up to 128 kbps. This service is suitable for a business that may have a small number of users on-line at the same time or needs to transfer files of substantial size (such as graphics) which would be too slow over a dial-up connection. While many dial-up ISPs provide ISDN Internet access, a customer needs to have an ISDN line installed to the premises. Telecom and Clear provide ISDN lines. Pricing for the lines and the associated access services varies. Details are available from ISPs providing ISDN service, but as an example Telecom provides access for $3 per hour for a 64 kbps connection (excluding the cost of the line).

xDSL/Cable Modem

While using different technologies, these two products deliver high speed Internet access on an "instant connection" basis (no dial-up required). The download speeds vary from 512 kbps-2 Mbps and upload speeds of 128-740 kbps.

The xDSL network connection is provided by Telecom through the Jetstream brand and is available in main cities and major provincial centres. Cable modem service connection is currently available in Wellington through Telstra Saturn.

Various ISPs retail connection services using both technologies. They are suitable for companies wanting a higher capacity data connection and can include a dedicated service. The Telecom and Telstra Saturn Web sites provide details of ISPs that retail Jetstream and cable modem services.

High-Speed Wireless/Satellite

High-speed wireless service provides essentially a similar service to xDSL and cable modem and is available through Walker Wireless, IHUG, Clear and other ISPs in a number of cities. Such connections can provide either high-speed download connections with a dial-up upload path or a dedicated high-speed two-way connection. The latter allows a business to have permanent connection for employees and to host and manage Web sites on site. The cost of such service varies according to the bandwidth of the connection wanted and the level of service demanded by the customer.

Satellite services offer high-speed download connections nationwide for anyone who can access a dial-up connection (for uploads) of 9.6 kbps or more. It can provide a fast download service comparable to that of xDSL/cable modem and terrestrial wireless services. Web site hosting would still be provided off site, but satellite provides a high-speed option for business in rural and remote locations.

Dedicated Connections

While it is possible to get dedicated connections using xDSL, cable modems and wireless services, the highest level of service is to have a permanent leased data circuit. This enables a business to be able to maintain the highest level of on-line presence. Such a service requires leased circuits to be provided by a telecommunications carrier such as Telecom, TelstraSaturn or Clear, and pricing will vary according the capacity of such a circuit and the level of service required from the network operator.


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