Telecom New Zealand deal to preempt regulation

13.02.2006
Telecom New Zealand Ltd. wants ISPs to take up a new UBS deal that offers faster upload speeds instead of seeking a regulated service.

In the letter sent out to ISPs, Telecom sets out the wholesale pricing for four broadband services and says if there is broad acceptance of the proposal it will have the services ready by April 1. An installation credit of $88 (US$60) is proposed and Telecom says it will give ISPs that wish to wholesale other products such as phone lines the same increased discounts that TelstraClear has been offered.

According to the letter, Telecom alluded to the changes in an earlier communication sent out to ISPs, following the wholesale deal.

Telecom spokesman John Goulter would not say if Xtra will release similar retail plans around the same timeframe, and denies that Telecom has gone out to the ISPs with plans or pricing.

Goulter says that Telecom is talking to ISPs about a set of wholesale principles. He calls it a "sort of a charter" which would guide Telecom's actions in wholesaling. This would guarantee quality of service levels across retail and wholesale, Goulter says.

Furthermore, Telecom would commit to make available products it releases for retail to its wholesalers, Goulter adds.