The New Zealand Internet Service Provider (ISP) scene has been a difficult place to do business. Monopolistic practices, red tape, slim margins and a very high financial entry requirement have meant that only the most enthusiastic ISPs have been able to establish themselves. Further to this, only the agile and innovative have managed to forge a long-term and financially viable business.

While communications pundits have launched a politically-charged offensive against Telecom and Government strategy, the immediate problem for the ISP has been that of survival on what is a very uneven playing surface. Most simply do not have the resources to dedicate to legal wrangling and have instead concentrated on establishing efficient and innovative businesses able to live with the very low margins that have resulted. ISPs such as ourselves that are now on the verge of being able to roll out their own DSL infrastructure have all but weathered the storm and are poised to bring a very different offering to the market post-unbundling.

Allowing competitive access to the physical telecommunications infrastructure will certainly have a positive effect on the market. Certain ISPs have long been gearing towards offering premium and business-grade services, delivered over DSL and capable of supporting the most demanding applications such as video conferencing and voice services. The current DSL infrastructure has not supported these at anything approaching acceptable levels of service.

So, what should the home user expect when they plug their modem into their new DSL connection post-unbundling? They can expect faster Internet access, phone and tolls services delivered over the same physical cables as their data, extremely quick access to local content, more consistent performance, and a reduction in the overall monthly cost. Online video content will also be snappier and gamers will enjoy significantly improved performance.

And what about the business user? Interoffice communication and hardware costs will drop, performance will increase, and a "business-grade" level of reliability will be offered. Voice and video conferencing will become real opportunities for businesses with the next infrastructure. Remote workers will also benefit greatly from the increased speed of connectivity to the corporate network and, again, the cost of communicating with others within the organisation will be lowered.

Unbundling is, of course, going to mainly benefit metropolitan users. A large percentage of rural users will not benefit from unbundling and must rely upon other "last-mile" technologies to enhance their broadband experience. One of the more vocal arguments against unbundling has been based upon the premise that ISPs and network operators will simply neglect rural infrastructure in favour of the "easy pickings" to be found in the metropolitan areas. For most regional ISPs, this simply is not true. These ISPs often already have a significant existing rural client base and have had to invest in the infrastructure to serve them. It is ridiculous to think that neglecting the support and expansion of this client base is an option that many will consider.

Excluding the possibility of fibre deployments happening within the medium term, the main options for rural or isolated clients are all wireless – whether terrestrial or satellite. Snap has been delivering both terrestrial and satellite broadband throughout the South Island for a number of years and we know the pros and cons of each approach very well. With careful deployment and configuration, the services can exceed the performance and match the reliability expected from their wired alternatives. So all in all, regardless of unbundling, rural clients still have access to broadband connectivity.

With broadband options to suit both urban and rural users, and all being capable of supporting next-generation services, the next few years will see an increased use of interactive and feature-rich content. Our population density may restrict the availability of coveted fibre solutions, but an unbundled local loop gives us more flexibility in the delivery of world-class broadband in New Zealand.

Jamie Cairns, General Manager,

Snap Internet