Proposal is no more than window dressing

Telecom's Naked DSL proposal is no more than a window dressing exercise

Orcon has today voiced its disappointment with Telecom's proposed Naked DSL wholesale product, saying that it is little more than a window-dressing exercise, and as such, they are not able to create a viable commercial product.

Telecom has capped the number of Naked DSL connections - that is broadband connections without paying a phone line rental - that can be delivered for all wholesale customers to just 50 per week, with a maximum of ‘five to ten’ per provider.

"What is the point of launching a product that we can only sign up one or two customers a day on?" said Orcon GM of Retail, Larrie Moore.

Not only has Telecom capped the number of connections to 50 per week, it has also limited connections to only new broadband customers.

“The early adopters who are most likely to use this service already have broadband, and Telecom knows this. Not allowing existing broadband users to change to Naked DSL is going to severely restrict the attractiveness of any proposition that we take to market.”

The crippling limitations set on this product appear on the surface to be an attempt by Telecom to limit the impact of lost line rental and calling revenue as people switch from traditional telephone services to voice over IP (VoIP) solutions.

"We know there is demand for this product, our customers keep asking us for it," continued Moore. "We just don't see the point in releasing a product that existing users can’t sign up for, and even if they could, not even one per cent of our existing customer base could get it."

Other markets around the world are beginning to see strong uptake of VoIP calling products, which generally offer consumers lower rates, and access to more features such as caller ID and voicemail.

Orcon has already announced that it will be launching its own VoIP product, DigitalVoice, to complement its Naked DSL product. Orcon intends to launch Naked DSL once these restrictions are removed.

"Regardless of the price and other conditions Telecom have set, this cap on connections - together with the limitation of not being able to sell to existing customers - makes this completely unworkable,” concluded Moore.

ENDS

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