Xtra and Telecom New Zealand one and the same: official

, posted: 31-Jul-2006 13:09

TelecomNZIs Telecom's voluntary structural separation actually going to achieve anything? That question is up in the air now that Telecom has declared Xtra is just a brand and as such, not required to buy services from the wholesale unit.

If Xtra is not a separate business unit from Telecom, how then will it be kept at an arms-length and treated the same as other ISPs? It is the largest ISP in New Zealand by a huge margin, with more customers than all other providers put together.

Having Xtra as an in-house brand indicates that the sort of structural separation that BT in Britain voluntarily underwent isn't on the cards. Instead, it looks like a pseudo separation where the different brands pretend not to talk to each other.

I don't see how such a move will generate confidence in New Telecom. The government isn't likely to buy it either, so Telecom can look forward to yet another dose of regulation towards the end of the year.

Other related posts:
The problem with VDSL2, part 2
The problem with VDSL2
The mysterious Dynamic Line Management on VDSL2

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