KEY POINTS:
One of the most significant moments in the long battle for deregulation of the telecommunications market in New Zealand played out this morning in the mundane surrounds of a central Auckland telephone exchange.
Telecom opened its exchange doors to rivals for the first time today in what it
acknowledged was a "landmark" day for telecommunications reform.
In an early trial of local loop unbundling, the dominant telco has allowed co-location in the exchanges by rival service providers, ihug and Orcon.
Ihug and Orcon engineers were able to enter Telecom's Ponsonby and Glenfield exchanges in Auckland to install their own telecommunications and internet equipment for testing, so later in the year they can deliver communications services direct to consumers over Telecom's copper lines.
Telecom's telecommunications chief operating officer Mark Ratcliffe called it a landmark moment in New Zealand telecommunications.
The move was precipitated in May when the Government announced it would force Telecom to open up its exchanges and lines to allow a more open market. That announcement resulted in a 30 per cent plunge in Telecom's share price, wiping around $3 billion off its value.
Telecom, which has said it accepted the Government's decision and would embrace a new environment, said it had moved ahead of its regulatory obligations, with the final Commerce Commission determinations not expected until November this year.
Telecom is still battling the Government proposal to force a three way operational split on the company as part of the unbundling decision. It has counter-proposed its lines be purchased by a third party, which the Government has said it would consider but not at the expense of delaying unbundling.
Orcon CEO Scott Bartlett said his company was thrilled to participate in the trials and was "chomping at the bit" to launch new voice, broadband and entertainment services.
Three other trials are planned in September.
Ihug chief executive Mark Rushworth said today's move was only a first step on the road to faster broadband for kiwis.
"It's important to remember that we still have a lot of work to do to offer faster broadband services for the majority of New Zealanders."
Ihug was bought in October by mobile phone giant Vodafone, which has over half of the local mobile phone markets.
Mr Rushworth said ihug would be testing over the next few months to make sure everything works, before launching a full service to customers in those exchange areas at the end of the year.
Telecom is currently preparing to open other exchanges for trials with other Auckland exchanges in Mt Albert, Ellerslie and Browns Bay scheduled to receive service provider equipment for testing in September.
Following these, Telecom would confirm whether it will be able to have five exchanges ready to receive equipment from all service providers by the end of the year.
North Shore-based Orcon began life in 1994, as the brainchild of Kiwi entrepreneur Seeby Woodhouse and is New Zealand's fourth largest internet service providers.
In June, the state-owned network company Kordia took over Orcon for a reported $24.3 million. It has around 75,000 customers, with around one third on broadband plans.
- NZPA