The Beginnings of Local Loop Unbundling

On Thursday, Telecom opened up access to its Ponsonby and Glenfield exchanges, as part of its directive in order to allow its competitors access to the copper phone network (i.e the last mile). This is part of a trial in local loop unbundling.

The first ISP's to take advantage of this are Orcon and Ihug. These ISP's have installed their phone and broadband equipment in the two Telecom exchanges as part of a commercial trial. This is the first time that Telecom has opened their exchange to ISP's and wholesale competitors. The trial is due to be expanded to five exchanges.

Telecom has pre-empted the Commerce Commission's rulings and regulation of LLU which is to come into effect later this year. However, Telecom will only be required to unbundle at the rate of 15 exchanges per quarter. Internet Service Providers are calling for this to be doubled or even tripled.

Orcon states it will offer up to 100 Mbit/s Internet, and that it will deploy equipment in every open and available exchange. CallPlus is also anticipating to perform tests in two exchanges, with a full commercial service by the end of the year.

Source: New Zealand Herald