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Telecommunications Competitors get regulated access to Telecom NZ network
Telecommunications Competitors get regulated access to Telecom NZ network | Competitors get regulated access to Telecom NZ network |
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| by Stuart Corner | |
| Thursday, 22 June 2006 | |
  
Bitstream access is a wholesale service provided by Telecom between an end-user’s premises and an ATM switch. This service is used by a telecommunications service provider to deliver retail broadband services. The service provider must supply other components including national and international transmission, connection to the Internet and ISP services. The Commission's decision follows a similar earlier decision requiring Telecom NZ to provide the Bitstream service to Telecom's largest rival TelstraClear. Telecom is required to provide iHug and CallPlus with Bitstream access which has an unconstrained downstream speed (up to the maximum capacity of the DSLAM) and an upstream speed of 128kbps. According to the Commission, "The availability of unconstrained Bitstream access will allow [iHug and CallPlus] to innovate and differentiate their broadband offerings from those of Telecom." Telecom is required to provide Bitstream access at a uniform wholesale price of $NZ28.04 per month, plus GST, which does not distinguish between customer type, speed or generation of ADSL technology. The Commission says that "Maximum innovation will occur where the Applicants are not constrained by Telecom’s own retail price and product differentiation strategies." It has concluded that a uniform wholesale price will not remove incentives for ongoing diversity in retail broadband services available at different prices. Telecom is also required to make available electronic operational support systems to facilitate the efficient provision of Bitstream access. |
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