Orcon on ‘go slow’

1 May 2008

Although state owned telco Orcon has fewer than 3,000 customers for its high speed ADSL2 broadband service five weeks after launching New Zealand’s first unbundled services, the company has no plans to aggressively market its services. Orcon chief executive Scott Bartlett said the company has the capacity to service more customers but would not make a rapid increase at the expense of customer service levels. Bartlett said the telco was attracting about 50 new customers a day by recommendation and said the margins were giving Orcon a good return. Parent company Kordia is investing tens of millions of dollars in a newly competitive market where it is seeking only a niche share; Orcon will stand back once Vodafone and possibly other players enter the unbundled market later this year.

Orcon was the first operator to launch unbundled services in New Zealand when the first exchange at Ponsonby was opened, and began providing services in Takapuna and the Auckland CBD on Wednesday. The next exchanges to be unbundled are in Blockhouse Bay, Manurewa, Howick, Mt Eden and Remuera.

New Zealand, Kordia