Orcon, Compass, Slingshot agree to share broadband

Orcon chief executive Scott Bartlett. Photo / Supplied

Compass, Orcon and Slingshot, three of New Zealand's smallest phone companies, will team up to share exchange technologies, allowing re-routing of individual broadband services, and potentially lowering costs.

The agreement by the companies to share their unbundled exchanges is expected to create the biggest network of its kind in New Zealand, they said. Exchanges unbundled by each ISP will be offered to customers of the other two, collectively providing a bigger network and reducing the need for replication of individual routing services.

"It brings more choice to the market and is a smart way for us to extend our unbundled reach," said Orcon chief executive Scott Bartlett. "Our customers will see faster, cheaper and better broadband as it should be."

Bartlett said the agreement allows the individual phone companies to offer more than they could on their own, and enables the preservation of capital while awaiting further regulatory announcements on fibre to the home.

Through the three companies using each others' exchanges, "ultimately it is our customers and consumers who will benefit from the co-operation," said CallPlus and Slingshot chief executive Mark Callander.

To date, CallPlus has unbundled eight exchanges in Hamilton and Compass has unbundled two in Christchurch. Orcon, which is a subsidiary of state-owned Kordia, has unbundled 40 in Auckland and two exchanges in Wellington.

As many as 50 additional exchanges will be deployed this year as a result of the agreement between the three telcos.