Telecommunications Commissioner Douglas Webb says that both Telecom and consumers stand to gain if Telecom is prepared to take the initiative and develop a comprehensive and fair relationship covering access to its fixed network by other operators.

"While there are encouraging signs of competition from alternative networks, Telecom's fixed network remains essential to the delivery of voice and data to most New Zealanders," Mr Webb said

"The regulatory system supports access to that network where necessary to promote competition. I believe the time has come for Telecom to do more to bring about open and non-discriminatory access. I believe we have reached the point where a comprehensive response is needed that goes beyond the incremental steps that have been taken so far," he said.

"I am not arguing for further regulation. I am instead pointing out to Telecom that it has an opportunity to advance its business by taking a different set of business decisions which may avoid that possibility.

"AAPT, Telecom's Australian subsidiary, in a submission to the Australian government a few weeks ago, argued that Telstra in Australia should provide equivalent access to key wholesale services required by competitors. AAPT note that this would prevent Telstra from favouring its own retail arm over access seekers.

"I suggest that Telecom should follow the lead advocated by its own subsidiary."

Mr Webb said the current Government, market and industry discussions about broadband uptake in New Zealand provide Telecom with an opportunity to demonstrate a new business direction.

"To accelerate our broadband performance beyond present levels and meet the broadband targets laid out in the Government's digital strategy, we need several things to happen:

• The wholesale access products on Telecom's copper must grow in functionality in response to user demand.

• Wholesaling must become a core function for Telecom, with transparent, non-discriminatory and efficient processes.

• Telecom must continue to invest in network upgrades and accelerate the availability of new technologies that support higher bandwidth.

• Competing providers must drive product differentiation and lower prices.

• Improving broadband penetration must go hand-in-hand with faster speeds.

"No matter how we go about it, no matter who joins the party, no matter how much Telecom's competitors put up, no matter to what extent the government and communities decide to invest, the lion's share of the investment involved in reaching government's broadband targets will have to come from Telecom.

"There is no other viable option, barring the emergence of a major new network builder.

"The best future, for Telecom and for everyone else, is one where Telecom:

• Makes the necessary network investments as rapidly as possible

• Moves in a rapid, determined and comprehensive way to open up the wholesale access channel to competitors

• Gives those competitors fair and non-discriminatory price and non-price terms:

• And accepts that a broadband market characterised by widely diverse offerings and strong price competition expands the total market faster than any other strategy.

"This is a win-win situation for Telecom, as long as it abandons the restrictive attitude adopted to date, and recognises that it's best future lies in supporting an open, competitive broadband market, with multiple suppliers.

"There is no comparable opportunity available to the company in any future if it forces regulators to decide the whole shape of the game for them.

"I believe that if Telecom grabs the ball and runs, we can achieve a solution that offers more for everybody than we could ever hope to achieve by deeper, more intrusive regulation. A regulated outcome would not deliver the benefits that will come from an open, entrepreneurial approach as opposed to one of 'conceding the minimum'.

"If Telecom continues to be defensive, instead of delivering an even-handed, transparent, and viable wholesaling platform, it risks losing the opportunity to develop a sound market-led outcome. The likely result then will be that it will inevitably find itself facing what may be a second-best regulatory solution," Mr Webb said.

Mr Webb was speaking at the 6th Annual Telecommunications and ICT Summit in Auckland.