KEY POINTS:
The Commerce Commission has levelled the playing field for Telecom's rivals but some providers say it is too early to know if this will mean cheaper and faster broadband for customers.
The commission yesterday set the local wholesale access price to the Telecom network as part of wider Government reforms aimed at improving competition in the telecommunications market.
It told Telecom it must give competitors access to the local loop - the copper phone lines which run from houses to Telecom phone exchanges - for a set price.
The new regulations, which will see a gradual introduction at 15 telephone exchanges from January, will allow competitors equal access to services from the local loop to provide phone and internet to customers without the need for separate agreements.
Telecommunications Commissioner Dr Ross Patterson said local loop unbundling had produced benefits overseas and predicted similar outcomes in New Zealand.
"We expect to see the same results in New Zealand, where consumers will benefit from better prices, greater choice, and access to more innovative products."
Telecommunications Users Association chief executive Ernie Newman was pleased the Commerce Commission had set a price.
"And we are looking forward to seeing the emergence of a vibrant unbundled local market in the months ahead."
Ihug chief executive, Mark Rushworth, was also upbeat after yesterday's announcement, saying it would mean an improvement in local telecommunications.
"It means ultimately better quality broadband because there will be alternative networks operating to Telecom and of course we all know in a market with greater competition we see services improve."
But TelstraClear's manager of regulatory access, Wendy Dodd, said it was too early to know if the new regulations would result in cheaper and faster broadband.
TelstraClear was awaiting news of Telecom's investment plans to build a high-speed broadband network which will be revealed later this month.
Telecom is required to reveal to rival companies any plans to bypass exchanges and run a high-speed fibre network direct to roadside cabinets.
WHAT'S HAPPENING?
The copper local loop, which refers to the standard Telecom telephone line that runs from a telephone exchange to an end-user's home, is being opened up to allow Telecom's competitors access to it.
WHAT THIS MEANS
* From January next year other telecommunications operators will be able to provide voice and broadband services to their customers using the standard copper pair.
* By putting their own equipment into exchanges, internet service providers will be able to offer new and innovative services such as video on demand and voice over IP.
* But some providers are awaiting an announcement from Telecom this month about its plans for a high-speed broadband network before confirming what their own investment plans will be.
