Vodafone has moved into the broadband wholesale market in a deal with internet service provider and phone company Slingshot.
Vodafone said today the two companies had signed a partnership deal to give Slingshot wholesale access to Vodafone's so-called Red Network.
Vodafone launched the Red Network in early June, saying that for the first time customers would be able to choose which network they used for their broadband.
The move puts further pressure on Telecom, which has been forced by the Government to split into three arms and open its networks to other firms to increase competition and speed up access to broadband internet services around the country.
Last month, Telecom reported a 15.5 percent fall in annual operating profit from continuing operations, with chief executive Paul Reynolds saying the result highlighted the increasingly competitive nature of the New Zealand telecommunications landscape.
Slingshot general manager Mark Callander is promising to give the market a "good shake-up".
The partnership with Vodafone would enable Slingshot to develop new voice and broadband solutions that would challenge traditional models, he said today.
Slingshot is planning to launch a commercial fixed-line broadband service by November.