KEY POINTS:
Telecom is undertaking to have fast broadband to every town in the country within four years, based on what the company calls a world-class next generation network.
New chief executive Paul Reynolds said today that during the next five years, Telecom anticipated total expenditure on its next generation network and fast broadband would be about $1.4 billion.
Telecom's undertaking comes on the day the public gets to see the company's draft separation plan, showing how Telecom proposes to split into wholesale, retail and network divisions as required by the Government.
Dr Reynolds said operational separation had given Telecom the opportunity to re-plan its broadband strategy and accelerate the upgrade of the existing network in ways that would support New Zealanders' aspirations for the digital age.
"Specifically, we plan to install more fast ADSL2+ technology, more fibre to the street, and create a next generation network capable of supporting a wide range of world class internet Protocol-based services for our wholesale and retail customers," he said.
A key element of undertakings submitted to the Government was Telecom's proposal to accelerate the first phase of an enhanced, next generation fixed network IP footprint to all towns with 500 or more lines, across rural and urban New Zealand.
"This enhanced network is world-class and will support the provision of sophisticated offerings, including faster broadband up to 20 Mbps, and VOiP services," Dr Reynolds said.
"And investment in fibre can support new technologies and services reliant on even faster speeds in the future."
Examples of townships that would benefit from the enhanced access network included Edgecumbe and Ngatea in the North Island, and Methven, Riverton, Pleasant Point and Waikouaiti in the South Island.
Dr Reynolds also said Telecom gained from operational separation because the company could compete in an environment in which the need for any future regulation was greatly reduced.
Communications Minister David Cunliffe called the preparation of Telecom's draft separation plan, including binding undertakings, a "milestone", saying it was a key step in the process of operationally separating Telecom.
"This critical initiative will help to reshape how New Zealand's telecommunications markets operate and perform for many years to come," he said.
"Without prejudice to stakeholders' feedback, I welcome the sea change in Telecom's approach to the separation process and their decision to adopt a constructive and progressive stance in recent months.
"I also wish to acknowledge the leadership shown by Telecom's new CEO Dr Paul Reynolds and I look forward to working with him to complete this process in good time," Mr Cunliffe said.
He wanted to hear whether any aspect of the draft plan could be modified to better meet legal requirements and his determination on the Telecom split, released last month.
Mr Cunliffe also pointed out that some aspects of the next generation network migration plans contained in the draft separation plan remained a work-in-progress.
In the draft plan Telecom said it was committed to meeting implementation timeframes, meaning key operational requirements would be implemented by the end of March, next year, with most remaining operational requirements implemented by the start of July.
Submissions on the draft plan must be at the Ministry of Economic Development by 5pm on November 23.
- NZPA
