Telecom says it is installing the most advanced standard of super-fast internet broadband, which will offer world class services.
Known as VDSL2 (Very High-Speed Digital Subscriber Line 2), it offered a huge step-up in broadband speed, said Telecom chief executive Paul Reynolds.
It was the next key phase of Telecom's multi-billion dollar capital expenditure programme.
The new VDSL2 capability will be offered from fibre-fed roadside cabinets and local telephone exchanges within Telecom's local access network.
VDSL2 was expected to offer customers who live one kilometre or less from an exchange or roadside cabinet download speeds of up to 50Mbps and upload speeds of up to 20Mbps. Already 57% of New Zealand lines can take advantage of Telecom's next generation access network and this grows to 84% on completion of the fibre-to-the-node roll out in 2011.
VDSL2 broadband plans will most benefit those who regularly download large files or use their broadband service for multiple voice, video and other applications.
VDSL2 had been tested for several months, said Telecom wholesale chief executive, Matt Crockett.
"We're excited to be getting the VDSL2 roll out underway in key metropolitan centres across New Zealand.
"With the fibre-to-the-node programme hotting up and shortening copper loop lengths across the country it's the perfect time to deploy VDSL2.
From March, VDSL2 line cards will be progressively installed into all roadside cabinets and local telephone exchanges in towns and cities with more than 500 lines.
In the second quarter of 2009, Telecom will offer service providers a new, dedicated VDSL2 broadband product initially available in key Auckland exchange areas, with roll out to all major cities and towns in the third quarter of the year.
Service providers can then offer VDSL2 broadband plans to their retail customers based on their needs, and their proximity to the nearest telephone exchange or roadside cabinet.