Vodafone to launch new broadband network

Vodafone said today it is launching a fixed line broadband in New Zealand that will also offer home phone lines.

Vodafone, the world's largest mobile phone company, said it had "unbundled" half of Auckland's phone lines already and by the end of October would have unbundled the whole city. Unbundling means it had put its equipment into Telecom's exchanges and was accessing Telecom's lines.

Today's announcement is fruit from the Government's drive announced two years ago to force Telecom to open up its network to promote more competition in telecommunications.

While Wellington and Christchurch consumers have had choice of networks via TelestraClear, Aucklanders until recently have mainly had to rely on Telecom's network.

Rival company Orcon, owned by state-owned Kordia, said it was the first to unbundle the local loop and "in the past two-and-a-half months we have unbundled more than a dozen exchanges across Auckland, offering high-speed, next-generation broadband and telephone service".

Vodafone chief executive Russell Stanners said that after setting up in Auckland, its "red network" would be extended to Hamilton, Tauranga, Palmerston North, Rotorua and Taupo, and Wellington.

South Island centres such as Christchurch and Dunedin would come later.

Marketing head Mark Rushworth said the network would not be hobbled and line speed would be the maximum possible limited only by distance from the exchange and traffic.

"All of the plans on the red network are unrestricted on upload and download," he said.

If demand outstripped capacity, more equipment could be rapidly installed, he said.

"But we have already allowed headroom for capacity growth."

Customers within 300 metres of an exchange could expect speeds of up to 50Mbps downstream.