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TelstraClear leads 'significant' broadband improvement

By Paul McBeth

Wednesday 1st April 2009

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TelstraClear, the subsidiary of Australian TelstraClear Corp., led a "significant" improvement in New Zealand's broadband services in the fourth quarter, according to the Commerce Commission.

The regulator's latest survey found most of the larger service providers increased the effective bandwidth available to their customers in the three months to December 31.

TelstraClear's cable service showed a significant improvement in the December quarter, after boosting the quality of internet access in Auckland and Hamilton. Telecom, Vodafone NZ, Orcon Internet, and CallPlus Services, the owner of Slingshot, also boosted their broadband scores, the regulator said in a statement.

The survey was conducted by broadband consultancy Epitiro and analysts at IDC, who concluded that broadband performance is improving as more consumers upgrade to modems using ADSL2+ technology, which increases speeds over copper lines. TelstraClear's cable service doesn't use digital subscriber line technology.

There is now concern that the rate of broadband adoption was showing "signs of slowing in a recessionary environment," the report concluded.

Over 20% of New Zealanders have a broadband subscription, and the nation ranked 19th on the OECD's June report into broadband uptake, and improvement from 26th place in the 2006 June report.

The government yesterday announced it aims to establish a state-owned company that would invest alongside the private sector in the roll out of ultra-fast broadband. The government will spend $1.5 billion over ten years, expecting the private investors to match that contribution.

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