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InternetNZ cautiously welcomes Telecom comments

Media Release – May 12, 2006 - "InternetNZ welcomes Telecom's comments today in response to last week’s Telecommunications regulatory reform announcements, but we do so with some caution," said InternetNZ Executive Director Keith Davidson today.

"Telecom's acknowledgement that the public support the changes announced is a good thing. The company’s now-stated commitment to respond to the new environment is a good starting point for the changes Telecom needs to make."However, the devil will be in the details of the response. Telecom couldchoose to make solid initial progress through: Considering voluntary structural separation into wholesale and retail divisions

Immediate voluntary engagement in real two-way dialogue with UBS wholesalers
Providing immediate improvement to existing broadband packages for both wholesale and retail customers, especially through improvement in upload speeds

Reinstituting neutral peering for Internet traffic with other Service Providers at all Internet Exchanges in NZ, providing faster, more efficient and cheaper interconnectivity within NZ
Treating the Internet as an open access network with end-to-end connectivity, rather than seeking to provide Telecom configured services and products
Eliminating ADSL churn fees and installation delays for the end customers of  wholesale Service Providers

"Alternatively, they could choose a defensive strategy which complies with the letter of the law but not the spirit of open access and equivalent wholesale treatment that lies behind the new framework."InternetNZ urges Telecom's Board and management to choose the firststrategy, and to put the record of recent years behind them," Keith Davidson concluded.ENDSFor comment please contact:Keith Davidson, Executive, 021 377 587

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