AUCKLAND, New Zealand, May 3 (UPI) -- Telecom New Zealand said Wednesday's decision to unbundle its local loop will do little to help expand broadband service in the country.
General Manager Bruce Parkes said the move by government regulators would take away any incentive for Telecom's competitors to invest their own capital in the necessary expansion of broadband infrastructure.
"Today's package actually tells players to put away any major investment plans and rely on regulation instead," Parkes said in a written statement.
The unbundling will require Telecom to open up its network to broadband competitors and comes at the climax of unhappiness with the government at the relatively slow pace of broadband expansion into rural New Zealand.
Communications Minister David Cunliffe said he expected to have legislation in place soon to implement the changes next year.
Competing companies, however, said they were ready to quickly ramp up services for broadband consumers.
