Telecom knocked back on VDSL unbundling exemption

Telecom expects to launch VDSL2 specific services later this year. Photo / Kenny Rodger

Telecom's new super-fast internet technology won't be exempt from local loop unbundling rules, if it chooses to use it to deliver the regular service, the Commerce Commission says.

In a draft decision released today, the commission responded to Telecom's request for clarification on how the unbundling rules, where Telecom has to open its phone exchange to its rivals, affected the new Very high bit-rate Digital Subscriber Line (VDSL) -- which is about five times faster than the current phone network DSL.

"The commission's view is that if Telecom delivers the existing regulated bitstream service using VDSL technology, it must do so on the terms of the regulated service," said telecommunications commissioner Ross Paterson.

"It is for Telecom to choose which DSL technology it wishes to use to deliver the regulated service, and it is not obliged to use VDSL.

"On the other hand, Telecom may use VDSL to deliver bitstream services with higher quality specifications than the regulated service, and can offer these services commercially," he said.

The commission could investigate whether the commercial service should be added to the regulated service, but as VDSL technology was in its infancy here it preferred to see how it operated in the commercial market and if competition concerns emerged it could investigate, Dr Paterson said.

- NZPA