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88 UCLL backhaul links "are competitive"

09 Mar 2011

The Commerce Commission has said that 88 unbundled copper local loop (UCLL) backhaul links are now competitive. 

The decision comes on the back of a review by the Commission into whether Telecom faces competition in providing this service.

"The number of competitive links has increased because of UCLL unbundling and the consequent deployment of backhaul links by alternate providers,” said Dr Ross Patterson, Telecommunications Commissioner. 

The Commission also concluded that TelstraClear provides a competitive constraint on Telecom on all links where it has fibre cables within 2kms of a Telecom exchange. 

Backhaul services provide Telecom’s competitors with access to transmission capacity on specific routes between Telecom's local exchanges and the competitors’ networks. 

 This allows competitors to provide communication services, such as voice and broadband to households, without having to replicate Telecom’s network. 

As part of the review, the Commission considered whether the lack of the ability to aggregate backhaul for multiple providers is preventing competition from developing in the UCLL backhaul markets. 

"The Commission concluded that Chorus’s recently launched commercial co-location offer does not restrict competition from developing in backhaul markets,” added Patterson.

The final report can be found here