Ihug Says Telecom Broadband Figures Not Good

4 November 2005

Ihug Says Telecom Broadband Figures Not Good Enough

Ihug says Telecom's '250,000 broadband milestone' announcement today is insignificant because it is only just over half way to meeting the one-third wholesale requirement set by the Commerce Commission.

Chief executive Mark Rushworth says it seems unlikely Telecom will get the 83,333 sales that it needs before the end of the year through other providers to avoid government intervention. It had only reached 47,059 sales at the end of September.

"Despite an overwhelmingly positive response to our new broadband plans, the Telecom wholesale figures released today once again illustrate that real competition is not alive and well in this industry.

"Telecom may be 'powering' ahead with their broadband sales but there is a long way to go before we can offer New Zealanders the prices and speeds that we see in regulated countries overseas. Only then will we see New Zealand improve in the OECD rankings for broadband uptake."

Rushworth says the failure of Telecom to meet the wholesale broadband target will leave the government with little choice but to regulate for improved competition.

ENDS

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