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.
