Telecom New Zealand subsidiary AAPT will
resell PowerTel's ADSL2+ offering, joining fellow Internet
service providers Westnet and likely Netspace in getting access
to the broadband network substantially owned by iiNet.
AAPT had previously only offered ADSL1 download speeds of up to
1.5Mbps, based on Telstra's network. ADSL2+ allows speeds of up
"PowerTel's network, and its strategic alliance with iiNet
provides a high-quality, national access network with competitive
rates," Telecom's chief financial officer, Marko Bogoievski, said
in a statement issued this morning announcing the deal.
Bogoievski also revealed AAPT had reached a new 24-month
supply agreement with Telstra for network and carrier
But it was the fledgling PowerTel relationship that AAPT was
most keen to emphasise, with Bogoievski stating the deal was the
start of a broader relationship between the two telcos. AAPT will
also resell other PowerTel services than just ADSL2+.
"Both AAPT and PowerTel believe there is significant merit in
developing options to collaborate in the Australian market, and
there is a commitment on both sides to examine deeper levels of
integration between our network and service layers," AAPT's
"We have an open mind about how those options might look. The
obvious extension to the wholesale arrangements would be the
implementation of a full virtual network operator model and an
examination of options to rationalise network
"The proposed alliance would reinforce the capabilities of
each entity and enable both AAPT and PowerTel to continue to
invest in services and network capability respectively."
In a separate statement, PowerTel managing director Paul Broad said today's move was seen by many as "the beginning of rationalisation in the Australian telecommunications industry".
Earlier this year, Telecom conducted a review into the future of AAPT, with merger, divestiture or retention options being on the cards. However in May, Telecom said the process had ended with a decision to retain the telco.