Chorus’s ambition to become the government’s partner in itsUltra Fast Broadband network has received a shot in the arm from an unlikelysource – TelstraClear.
At the TUANZ Telecommunications Day this morningTelstraClear Chief Executive Allan Freeth told the audience that Chorus was themost appropriate vehicle to provide a national fibre to the home network.“Let’s find a way to do it with them, separation or not,” he says.
Freeth cautioned against overbuilding, which he says is creating “networksocialism”. According to Freeth a small country like New Zealand needs to pool together and Freeth used a rugby analogy to illustrate his point. He says that to favour regional fibre networks overTelecom’s national network was like picking regional teams to play in the RugbyWorld Cup and ignoring the All Blacks because they’re into merchandising. Although he pointed out that TelstraClear has partnered with a number of regional networks, such as Northpower in Whangarei.
Freeth told the audience during question time that if he wasin government he would channel all the funding into a rural network as that waswhere it was uneconomic for telcos to invest.
TelstraClear has invested $25million in unbundling 62 exchanges. It also has a cable network in Christchurchand Wellington, which Freeth says has over 50% market penetration.
Gen-i CEO Chris Quin – who was representing Telecom on theCarriers Panel – remained tight lipped regarding the possible sale ofChorus in order to a pave the way forTelecom’s involvement in the UFB. Echoing Telecom CEO Paul Reynolds’ commentslast week, Quin says the telco is open to a number of possibilities and would act in theinterests of its shareholders.
