Telecom failing at 'managing', says Commerce Commission

Telecom is not properly managing the way it opens its broadband network to its competitors, putting rival internet providers' services at risk, the Commerce Commission says.

A report by consultant Paul Brooks for the commission says Telecom does not have a coherent management plan to protect competitors' services from being degraded as more services come on to its network.

If Telecom did not develop a solid management plan, broadband speeds could be slowed by interference from more users and the transmission rate could be reduced.

The Government said in May that it would force Telecom to open its network to competitors.

For this to be done, Telecom needs to develop a "spectrum management plan" showing how the introduction of hundreds of thousands of new users would affect its network.

The commission report challenges Telecom's claim, made last week, that more users and faster broadband speeds on its network would disrupt services.

A proper spectrum management plan would overcome these problems, it said.

The report said unconstrained ADSL services were unlikely to increase the risk of interference with other ADSL services, but only if a new plan was established before higher speeds were offered.

In October, Telecom plans to offer unconstrained speeds - faster than its current 2 megabits per second and 3.5 megabits per second services.

CallPlus chief executive Martin Wylie said that by not providing data to support its claims, Telecom was "strangling local loop unbundling".

"This is just another example of Telecom leading the industry off on a wild-goose chase," he said.

"If there is a problem with the network, then all Telecom needs to do is provide data and evidence to back up its claims."

Telecom spokesman John Goulter said the company had put together a spectrum management plan draft for discussion.

It was based on the equivalent Irish plan "with adjustments to reflect the NZ environment", he said.

Telecom would be testing and measuring the effect of unconstrained speeds, and would share this data with the commission as well as the industry.


THE REPORTS

Telecom

* Faster broadband speeds will affect the performance of some competitors' DSL services.

* More investigation is needed on the effect on business services.

Commerce Commission

* Unconstrained speeds are unlikely to increase the risk of interference with competitors' services.

* Telecom is badly managing the opening up of its network.

* Telecom needs to develop a full plan before the uptake of faster speeds and users on its network.