Speeding slowly towards internet deal with telco

Internet service providers are talking to Telecom about a better wholesale high-speed internet deal, but don't expect any results until at least the second half of the year.

That is despite new regulations granting TelstraClear more favourable terms.

Last month the Commerce Commission ruled that Telecom would no longer be able to constrain the download speeds it offers to TelstraClear. The ruling also unified the wholesale price, which means TelstraClear will pay $27.87 a user regardless of whether they are a business or residential customer.

David Diprose, president of the Internet Service Providers Association of NZ (Ispanz), says the ruling is to take effect by June and applies only to TelstraClear, but other ISPs are hoping for "the same or better deal".

"But I can't see there's any way in the world we'd get anything before TelstraClear.

"The question is, will we get it at the same time or will it be later?"

Telecom spokesman John Goulter would not comment on the negotiations, but said the company's approach had generally been to apply regulated outcomes to other customers.

"It has been our practice when a determination is finalised, to roll similar terms over to other ISPs," he said.

Diprose, who is general manager of regulatory affairs for No 3 ISP ihug as well as spokesman for the 22-member group, said Ispanz was seeking an improvement on TelstraClear's access.

That company's deal allows for greater network congestion during peak usage, which could result in slower connections.

He said the association would like an arrangement that avoided such congestion.

Ispanz was not able to apply for a regulated deal until it could show that a commercial agreement could not be reached. Diprose said they had not yet arrived at that point and the group was scheduled to meet Telecom next month to discuss a possible deal.

But it would move for regulatory intervention if need be.

Goulter said Telecom was still considering applying for a judicial review of the TelstraClear ruling.

A legal challenge could push back the implementation date.

TelstraClear, which has thus far held out on reselling Telecom's broadband access, has said it hopes to make its offering plans public by as early as March.