Telecom Unbundled Bitstream Service Finalised

Telecom Unbundled Bitstream Service Finalised

Telecom will provide funding to smaller Internet Service Providers (ISPs) to help them to promote their own branded broadband services.

As part of the new Unbundled BitStream Service (UBS) to be launched in September, Telecom will contribute matched marketing funds of up to $15,000 to ISPs that meet certain criteria to assist with broadband promotions.

The new initiative follows industry consultation on UBS which will enable ISPs to develop and offer customers their own range of broadband plans including setting caps, overage rates and all-you-can-eat options.

During the past six weeks Telecom Wholesale has been meeting with ISPs and other carriers to outline the service and receive their feedback.

Other key changes include a 30 percent reduction in the cost of transferring existing customers to new services (churn fee) from $150 per customer to $101.75 and $105.50 for residential and business customers, respectively.

To further reduce cost, ISPs will now be able to purchase backhaul on a per user basis. Previously it was proposed ISPs would establish a handover point and two megabyte connection in each of the up to 33 areas where customers are based.

The point at which discount rates apply have been reduced from 200 new customers a month to 150 customers with a further discount for those ISPs who have more than 500 new customers a month.

Telecom Wholesale General Manager Tim Lusk said the consultation had resulted in a number of detailed and constructive suggestions to improve the service.

“The UBS, Unbundled Partial Circuits (UPC) and new Wholesale Service Agreements (WSA) will provide the base for Telecom’s new relationship with wholesale customers,” he said.

The new agreements will replace the existing partnering relationships where ISPs received a commission on their sale of Telecom services.

“We are looking forward to working with ISPs to develop their own products and services which will ultimately drive the uptake of broadband in New Zealand.”

The next step in the process will be to select trial partners for the new service, after which it will be commercially launched in September.

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