Telcos promise ‘largest unbundled exchange network’

Three telecommunications companies have reached an agreement to share their unbundled exchanges creating what is expected to be the biggest network of its kind in New Zealand.

The move by Compass, Orcon and Slingshot gives consumers access to faster and potentially lower cost broadband services across more exchanges in more centres.

Exchanges unbundled by each ISP will be offered to customers of the other two in an agreement signed in Auckland on Friday (May 21).

Orcon CEO Scott Bartlett says the agreement results in better performance and lower prices for more people.

“This is great news for our customers and Kiwi households. It brings more choice to the market, and is a smart way for us to extend our unbundled reach. Our customers will see faster, cheaper and better broadband as it should be.

“Through this agreement we are able to provide significant improvements to broadband speeds, more than each business would have been able to offer on its own. Importantly it also enables the three ISPs to preserve capital while we await further regulatory announcements on fibre to the home.”

Compass CEO Karim Hussona says the benefits of unbundling are inarguable but it’s costly to deploy.

“Unbundling has proven to deliver significant benefits in terms of higher service performance, lower costs and improved range of services.

“The agreement enables us to cooperate in areas of deployment, sharing knowledge and standardising on a proven technology platform – and that means we can bring the benefits of unbundling to more New Zealand homes and business and far faster than we would be able to independently.”

CallPlus and Slingshot CEO Mark Callander says the agreement is an example of market forces working for the benefit of consumers.

“Collectively we account for a significant portion of the unbundled lines in the market. This agreement is likely to result in the largest unbundled exchange network in New Zealand. Ultimately it is our customers and consumers who will benefit from the co-operation between the three of us.”

To date, CallPlus has unbundled eight exchanges in Hamilton and Compass has unbundled two in Christchurch. Orcon has unbundled 40 in Auckland and two exchanges in Wellington. As many as 50 additional exchanges will be deployed this year as a result of the agreement between the three telcos.