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TelstraClear is extending its phone network in main centres intocentral Whangarei, hooking into Northpower's fibre-optic network in the central business district.
In a memorandum of understanding signed with Northpower yesterday, TelstraClear said the new service would provide access to phoneservices and super-fast broadband in the city.
The Whangarei CBD expansion will reach only about 900 businesses, schools and medical health sites.
But it is a sign that TelstraClear - whose own network is currently limited to Auckland, Wellington Christchurch and Dunedin - intends to expand further.
TelstraClear is the New Zealand arm of the Australian giant Telstra and is the biggest potential competitor to Telecom.
TelstraClear chief executive Allan Freeth said the company would be making a marketing push.
TelstraClear is planning to bring its voice and high speed broadband services to Whangarei by Christmas.