Abstract
Description
New Zealand has a low broadband penetration rate by developed country
standards. Apart from a small cable network, the incumbent Telecom New Zealand
faced weak competition from its competitors. The absence of comprehensive
wholesale regulation or unbundled local loop was the primary culprit. These
deficiencies were addressed by major regulatory reforms in 2006, which also
imposed a strict operational separation on the incumbent. Seeing the writing
on the wall, and determined to maintain its technology lead, Telecom New
Zealand announced in March 2006 that it would construct a FTTN/ADSL2+ network
reaching over 80% of access lines in the country. To date, attention has
focussed on the implementation of the wholesale market and ULL. We expect the
industry to shift its attention to the implications of Telecom' s new access
network in the coming months.
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