KEY POINTS:
Phone and internet companies are lobbying the Commerce Commission to move quickly to introduce new rules that will let them deliver broadband to consumers without the consumers having to pay Telecom for line rental.
The service -- known as naked DSL -will allow a true alternative to Telecom's fixed-line telephone and internet services.
It will allow phone services over broadband connections.
Callplus and Compass have sent a joint submission to the Commerce Commission to force Telecom to make naked DSL service available to its wholesale customers.
Under the Telecommunications Amendment Act passed last December, Telecom will have to provide a naked DSL service and make its network available for competitors' equipment - a process called local loop unbundling.
But Callplus chief executive Martin Wylie complained that the Commerce Commission has still not made a decision about when unbundling and naked DSL services will be made available.
Graham Walmsley of Callplus said it was seeking, in partnership with Compass and WorldxChange, a quick commercial process for the industry to be facilitated by the Commerce Commission.
"It was pressure to say look, the danger is this process doesn't allow for any commercial quick wins. We believe there are some things Telecom can do fairly quickly to deliver benefits."
Wylie said the Commerce Commission had been "dragging its feet" over the process.
"I think it [naked DSL] is completely straight forward to put in place technically.
"There may be some changes needed to be made to Telecom's records system, but other than that it's just a pricing change."
The introduction of naked DSL would mean consumers could cut the cord from Telecom and competitors of Telecom could deliver digital voice and data services via broadband, he said.
WorldxChange chief executive Cecil Alexander said local loop unbundling would be initially focused in the denser population areas, but naked DSL would be nationwide.
"We accept there will be a cost with the naked DSL service but at the very least the customer is going to save $20-$30 a month," he said.
WorldXChange will offer a bundled service of digital broadband, call waiting and caller ID for about $70 a month, he said.
"Consumers will also be able to connect to digital networks globally and that will drive costs down," he added.
"If we can get rid of the requirement to have the analogue phone line associated with broadband, we can start giving New Zealanders that service that everyone is dreaming about."
WorldxChange, Callplus and Compass are the only companies who have "full-blown, operational" consumer grade digital voice products in the marketplace, he said.
Communications Minister David Cunliffe said the legislation strengthened the powers of the Commerce Commission to be proactive and to conduct multilateral determinations regarding Telecom.
"We see the commission as a vital office in going forward," said Cunliffe.
Phone Wars
* Naked DSL is a phone service delivered via broadband.
* It will mean that consumers will be able to stop paying Telecom's line rental.
* Local loop unbundling will allow Telecom's rivals to place equipment on its network.
