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Telecom's wholesale customers have been told to expect naked DSL - the ability to offer a broadband service via a phone line without having to pay the company for line rental - by the end of September.
Customers such as CallPlus, Orcon, ihug, WorldxChange and its own retail arm can get the service from September 28.
Naked DSL means consumers can get rid of their phone line in favour of Voice over Internet Protocol (VoIP) - phone calls using the internet.
Telcos CallPlus and WorldxChange already offer a phone service using VoIP technology.
This week, Orcon said it would offer a VoIP service when naked DSL became available in September.
The commercial naked DSL service comes more than two months before the Commerce Commission is expected to make a decision on regulated terms and prices for the service.
Telecom said initially it would limit the number of end-users of the service to those signing up new broadband connections.
"It ensures that we can monitor product performance levels as well as back-end support systems to ensure our offering will meet market demands," Telecom said.
Internet companies will be able to move their existing broadband customers to naked DSL from December.
Telecom said it expected to introduce enhancements to the service over the next few years which could open up opportunities for television and movies delivered over the internet.