Orcon & Siemens to form LLU Alliance

Orcon & Siemens to form LLU Alliance

Orcon Internet and Siemens Communications are pleased to announce that they will be working together to deliver superior broadband for New Zealanders in the new unbundled environment. Orcon announced plans for a $30 million wholesale LLU network investment back in June, to be built in conjunction with a world-class telecommunications partner.

“We are lucky to have found a partner that is as forward thinking and technologically capable as Siemens; the newADSL2+ network is going to finally bring true broadband to the masses, “said Orcon’s General Manager of Operations and Regulatory Scott Bartlett.

Orcon recently launched New Zealand’s most affordable broadband with its $19.95 plan, which is part of the company’s strategy to maximize scale and presence in the broadband market.

“Our plans have always been far superior to those of other larger players in the market, with our existing $29.95 plan offering 10 times as much data and 10 times cheaper excess data; but this new plan at $19.95 provides for a very affordable entry point for those customers who have put off the leap from dial-up to broadband due to price.”

“We think it's about time that New Zealand catches up with the rest of the world and has access to affordable broadband; and we know that people are fed up with waiting for it to happen,” continued Bartlett.

“In order for us to get as many kiwis on true broadband under LLU, we need scale to justify our investment plans. We are partnering with a number of other ISP's to wholesale off the new network, but a large part of our motivation behind the new $19.95 broadband plan is to bring new customers to Orcon who have the desire to support a kiwi company in delivering quality broadband now and into the future.”

This bold move is part of a long term plan that will see Investment of up to $30 Million in building a new wholesale ADSL2+ broadband network, capable of delivering download speeds of up to 24Mbit, voice services and IPTV (with over 50 channels set for launch in late 2007).

Siemens Communications Manager Phil Josephs said the new ADSL2+ network will be capable of delivering services that the current ADSL network can’t.

“Siemens has partnered with Orcon to build a broadband network that can deliver the kinds of speeds and services that customers are demanding today,” said Josephs.

“Orcon has taken the additional step of committing to making the new ADSL2+ network available to wholesale partners. Today we have only one wholesale ADSL network in New Zealand, but this new initiative will create choice within the market, thereby creating a competitive broadband environment which will benefit all New Zealanders,” he said.

The new network will be built initially in the main centers, with other areas including rural/provincial cities such as Hastings, Napier, New Plymouth, Palmerston North, Dunedin, Whangarei, Hamilton, Tauranga, Nelson, Invercargill, Masterton and Wanganui coming online in stages 2 and 3 of the network build (over a 2-5 year period).

An exact construction start date has yet to be set as Orcon eagerly awaits the results of either commercial negotiation with Telecom for LLU access, or legislation from the Government consistent with the broadband package announced in early May.

Broadband plan details:

• 256Kbps/128Kbps
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• $19.95 p/month with Orcon tolls
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• $29.95 p/month without Orcon tolls
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• 200MB of data
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• $0.02c p/MB excess charge
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• Charging cap of $149.95 p/month
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• Free connection (saving of $99)
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Investment details:

• Up to $14.1 million in stage one, delivering ADSL2+ services to over 250,000 kiwis, including IPTV and VoIP
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• Up to $16 million in stages two and three, delivering ADSL2+ services to more urban and rural/provincial centres
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• ISP partner is Orcon Internet Ltd
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• Vendor partner is Siemens Communications
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About Orcon
Orcon is already the third largest ISP wholesaler in New Zealand, and as such is well placed to make open access wholesale LLU work. Orcon is also the 4th largest ISP in New Zealand and is 100% Kiwi owned and operated. Orcon employs over 100 people throughout New Zealand.

About Siemens in New Zealand
Siemens commenced operations in New Zealand in 1876 and is now one of this country's most reliable and trusted brands. With well-established businesses in both Australia and New Zealand, Siemens is a diversified technology based solutions provider specialising in power, communications, transportation, healthcare, buildings and automation. At the end of fiscal 2005 (September 2005), Siemens achieved AUD 1.735 billion in sales with 3,370 employees. Siemens in Australia and New Zealand is part of the Siemens global network of innovation which operates in 190 countries throughout the world.

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