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Strongest Quarter Yet For Broadband

Strongest Quarter Yet For Broadband

Broadband in New Zealand recorded its highest growth yet in the three months to the end of 2004.

At 31 December 2004, Telecom had 122,805 residential broadband connections, a 65% increase during the quarter.

“This was the quarter when broadband began to hit the mainstream,” Telecom Chief Executive Theresa Gattung said today. “We’re well on the way to our target of 250,000 residential broadband connections by the end of 2005.”

Among the 48,356 additional residential broadband connections, 14% were to competitors under the new Unbundled Bitstream Service (UBS), launched during the quarter. The 48,356 additional connections includes about 7000 customers upgrading from 128kbps JetStart plans.

“We’re pleased with how this new service for competitors has started, and we expect it to grow even faster after the launch of 1 and 2Mbps UBS services in March,” Ms Gattung said

Telecom also recorded an 11% growth in business broadband connections.

In total, Telecom had 168,272 broadband customers at 31 December 2004, including both residential and business connections.

In addition to the 122,805 residential broadband connections, there were 16,000 remaining customers on 128kbps JetStart plans which are not included in Telecom’s broadband figures.

Telecom believes other providers of broadband were also experiencing similar growth.

“Anecdotally, we’re hearing that the whole industry is experiencing new interest in broadband, and carriers delivering services on their own networks appear to have had similar surges in sales at the end of the year,” Ms Gattung said.

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