KEY POINTS:
Telecom's carve-up into three divisions needs to take into account the future telecommunications environment, say its competitors.
In feedback on Telecom's plans to split into three business divisions - wholesale, retail and network - TelstraClear said the division needed to reflect a future where high speed fibre rather
than copper runs to streetside cabinets.
TelstraClear's regulatory head Chris Abbott said that local loop unbundling - allowing telcos to place their own equipment in local exchanges - would cease to be the primary form of network access for Telecom's competitors as the company installed fibre networks which would circumvent the exchange.
He said it was important that wholesale access to high-speed broadband services from the new fibre network was guaranteed under Telecom's separation plan. "We think including it now will ensure that operational separation is future-proof," said Abbott.
As it stood, Telecom's plan only gave vague promises about providing wholesale access to high-speed broadband services delivered from the streetside cabinets, Abbott said.
He said TelstraClear's Australian parent Telstra had made a commitment to wholesale access under its own fibre network plans.
The incoming Australian Labor Government has outlined plans to spend A$4.7 billion ($5.4 billion) subsidising a high-speed fibre broadband network and Telstra has publicly stated it would only require 48 hours notice to begin work.
"We're consistent both in Australia and New Zealand about 'fibre to the node is good' and furthermore there should be wholesale access that will ensure there is competition delivered," said Abbott.
Ihug's David Diprose would like to see greater industry involvement in setting the timetable for implementing equal access to services provided over Telecom's network.
He said the implementation plans for equivalence of access to services for Telecom's own retail division and other telcos wholesaling off Telecom were very drawn out.
Diprose would like to see the issue discussed between industry players belonging to the Telecommunication Carriers Forum, which have in the past successfully thrashed out technical details relating to regulation.
"If it leads to tighter timeframes then great, if it doesn't then we all understand it better," said Diprose.
Split decision
* The Government and Telecom are in the final stages of working out the details of splitting Telecom into three operating divisions.
* The split is aimed at improving competition in the broadband market by allowing Telecom's rivals to purchase wholesale broadband services on the same terms as Telecom's own retail division.
* Telecom will officially begin working as an operationally separate company on March 31 next year - "separation day".
