KEY POINTS:
Telecom may not begin to open its network to competition until March next year, according to documents filed with the Commerce Commission.
The documents reveal that by April next year Telecom is planning to have given competitors access to just five of New Zealand's 650 exchanges. This has
prompted concern from other phone and internet companies about the pace of opening the network - a process called local loop unbundling.
The plan - outlined by Telecom in documents given to the Commerce Commission earlier this month - states how Telecom will manage access to its network by rival companies, but does not deal with pricing.
CallPlus head of wholesale and regulatory Graham Walmsley says it is a "failure".
CallPlus estimates it would need access to 120 exchanges to get close to 50 per cent market penetration. "At that rate it would be 3 1/2 years from the end of this year," said Walmsley.
Telecom's proposal says it will open up five of its exchanges by next April, from a list of 40 the industry identified for priority access.
The names of the 40 exchanges to be unbundled and potential access seekers are confidential.
The Commerce Commission will come back to Telecom at the end of July with a response to its plan.
Walmsley said a longer roll-out time increased the investment risk as new network technologies, such as fibre to the home, make access to the copper network less economic.
"It took three-plus years in Europe," he said. "We need to accelerate that significantly or it's just going to be irrelevant."
Ihug's general manager of technology, David Diprose, said he was happy with the approach outlined in Telecom's proposal but was still keen for some changes.
"It's got to happen a lot quicker and there needs to be tighter timeframes so that instead of customers getting faster speeds by Easter next year, they'll get them as a Christmas gift instead."
Telecom Wholesale spokeswoman Melanie Marshall said the proposal outlined its response to the regulated process of setting standard terms and conditions for local loop unbundling.
Alongside the regulated process, the company was working with the industry to open up access to five of its exchanges by Christmas, she said.
Trials with companies wanting to install equipment in Telecom's exchanges begin next month.
She said a "bare minimum" roll-out would see Telecom open up access to 10 exchanges per quarter. "We really are working as hard as we can to get this delivered on time."
The telecommunications industry has until 5pm today to respond to Telecom's plans to open up access.
Shares in Telecom closed down 6c yesterday at $4.46.
Path to unbundling
Story so far
May 2006: Government announces telecommunications industry reform, including opening Telecom's network to competitors.
December 2006: The Telecommunications Amendment Act introduces a new process allowing the Commerce Commission to set the rules on how Telecom provides competitors access to its network.
February 2007: The commission asks Telecom to begin work on a draft proposal.
June 2007: Telecom submits its proposal, which is then open for industry comment.
What comes next
July 2007: Commission releases draft determination.
November 2007: Commission releases final determination.
December 2007: Telecom opens up five exchanges to rival companies under a negotiated agreement.
April 2008: Five exchanges opened to rivals under Telecom's regulated proposal.
