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Of course anyone who's been following this saga knows full well that this is not local loop unbundling -- but TVNZ's One News seems to be rather confused about the whole issue. (Check out the video from last night's broadcast which is online there).

I almost choked on my vegemite sandwich last night as I watched the 6pm bulletin and was informed that we'd all get faster, cheaper broadband "now the Commerce Commission has ordered Telecom to sell Telstra Clear access to the cables connecting homes to local exchanges."

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They then proceeded to even show exchange racks where, one would assume, TC will be installing their own DSLAMs and hooking them up to the cable-pairs that disappear underground, resurfacing at houses around the area.

Now maybe I'm confused (it's happening more frequently as I get older) - but doesn't the CC's directive simply give TC access to Telecom's full-rate bitstream service?

Won't this mean that Telecom continues to provide all the gear, simply providing an unrestricted conduit for the bitstream which is actually delivered by Telecom's own DSL equipment and circuits?

If this is the case, it's pretty easy to see why people are turning off TVNZ's news bulletin and switching to TV3 -- at least they've got the facts right on this story.

Or did Telecom tell TVNZ "hey, pitch the story so that the vast unwashed masses think we've unbundled the local loop and we'll spend an extra $50m on advertising with you next year"?

Incompetence, corruption or confusion -- take your pick but whatever the reason, it sure makes you realise that there's little fact-checking associated with news reporting these days.

But, error-filled reporting aside, will this move have any real effect on the NZ broadband marketplace?

It's worth noting that, despite enjoying the benefits of an even more open market in Australia, Telecom has announced that it will be appealing the CC's ruling so the planned implementation date of May next year may yet slip - or even disappear completely.

And, once again, Telecom has rolled out a bunch of FUD to counter this move.

"Ooooh, don't make us play fair or we'll stop servicing the rural sector" is the current *threat* associated with the prospect of such regulation.

Come on government. Telecom needs a good kick up the arse.

Split Telecom into two separate entities and unbundle the loop. Only *then* will we really see a competitive telecommunications market in this country.

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