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The goverment's decision to free up access to broadband technology has been criticised by Telecom. But others involved in the telecommunications industry say it is a move that will have a beneficial impact for consumers.
The government is proposing unbundling the local loop, which will give Internet Service Providers (ISPs) the same access to copper wire technology as Telecom. The government says that would provide faster, cheaper broadband.
Telecom says it is hard to see how the package will deliver high speed broadband throughout New Zealand.
Telecom's General Manager for Government and Industry Relations Bruce Parkes says high speed broadband services require major investment from all players in the sector.
"Today's package actually tells players to put away any major investment plans and rely on regulation instead." Parkes says.
Telecom says the need for investment is particularly important for rural New Zealand. Under the package outlined by the government the company says the rural sector and services like digital television, which run on high speed broadband, will miss out.
But new media commentator Russell Brown believes the move to unbundle the local loop will have a beneficial impact. He says the poster child for unbundling is Britain where there has been a large amount of investment.
Unbundling the local loop will put other telecommunications' companies on an equal footing with telecom.
Brown says Telecom's argument that there will be no more investment is incorrect.
"You've got big companies coming in, investing and providing services over the copper network and if you look at what happened internationally last year... almost all the growth in broadband was in DSL, that is broadband delivered over the existing copper network," Brown told Close Up.
Ernie Newman from the Telecom Users Association of New Zealand agrees.
"All the economic evidence is the regulation of this kind increases investment, doesn't reduce it,"
While ISP Slingshot is welcoming the new package saying it is a move on the right direction, it hopes it is just the beginning.
"But now is the government going to take the bold move of putting in place a real blueprint so that we can provide better pricing and services to New Zealanders?" Slingshot's Annette Presley told Close Up.
She says presently she cannot say how much cheaper broadband could be under the package.
