TelstraClear is spending around $NZ25 million ($A20.33 million) putting its own equipment into telephone exchanges.
The investment is the single largest network expansion in nearly 10 years by the New Zealand arm of Australian telco Telstra.
As of this week 220,000 customers connected to 23 exchanges in Auckland and 19 exchanges in other urban areas will be able to link to TelstraClear's own exchange equipment, The New Zealand Herald reported.
That allowed TelstraClear to reduce its dependence on wholesaling Telecom's copper-based broadband and phone services.
A further 20 exchanges will be added later in the year with seven more being considered.
TelstraClear said the local loop unbundling would almost double its network, made up mainly of a cable network in Wellington, Kapiti and Christchurch.
The company released a new suite of pricing plans on the back of the unbundling, starting at between $79 and $84 for a basic phone and broadband package.
Mr Freeth said TelstraClear would offer customers the same phone and internet bundles whether they were served by its new network or equipment wholesaled from Telecom, The Dominion Post reported.
But TelstraClear would earn better margins using its own exchange equipment, and that would be reflected in better value bundles over time, he said.
© 2009 AAP
