CallPlus cautiously optimistic about LLU draft

MEDIA STATEMENT

CallPlus cautiously optimistic about Commerce Commission draft determination on local loop unbundling

Auckland, Tuesday 31st July 2007 - “It’s a reasonable starting point, however the devil is in the detail” said Martin Wylie, CEO of CallPlus, after reviewing the Commerce Commissions draft standard terms determinations on local loop unbundling and co-location.

“The approach of de-averaging price whereby we pay one price for urban and one for rural is a practical approach which we support – balancing the need to get LLU underway with encouraging investment in alternate technologies such as WiMAX in the rural areas where LLU isn’t going to provide an effective solution.”

“The price of $16.49 in urban is a little higher than we expected, Australia in contrast has prices in urban areas ranging from A$7.20 in CBD to A$17.70 for metro. The price is in the zone where we can business case our rollout however we need to carefully work through the detail as it is the ability of the incumbent telecommunications company to layer costs that has caused many of the issues overseas.” said Wylie.

“We need to review the documents in detail, there are still issues but overall we are cautiously optimistic that we can now move forward with our investment plans both for LLU and also WiMAX based on these drafts” Wylie concludes.

ENDS

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