Energy supplier Vector and three new partners are making an aggressive play for the small business broadband market in Auckland's central business district.

WorldxChange, MaxNet and BizOnline have signed up to use Vector's fibre-optic network in Auckland and are launching competitive broadband and phone offers.

The move is being promoted as an opportunity for small to medium-sized businesses to "cut the cord" with Telecom.

Vector Communications spokesman Chris Green said packages start from about $550 a month and include voice-via-the internet service, free local calls, cheap toll calls, high-speed uncapped broadband of up to one gigabits a second, and 100 gigabytes of free online backup.

A typical business with five separate phone lines would each month spend about $150 on internet and $500 to $600 on voice, including local calls.

"If small businesses come across to us now they can come and be on a far better internet service. They will be getting a complete enterprise voice service from the companies, free local calls, cheaper tolls, and all for the same money," said Green.

There is a perception among small business that only large corporates can connect up to broadband fibre networks, but it's not true, he said.

"A lot of businesses in New Zealand haven't figured out what that fibre is worth to them. They just think all they need to do is see a few emails and browse a few internet sites. Small business should think about how broadband of this quality could transform their business."

Vector's fibre network covers 500km around Auckland, predominantly around the CBD, North Shore and Manukau. The network is connected to most buildings in the CBD.

Unlike Telecom, there are no copper lines going from the exchange to the premises or from the road-side cabinet to the premises.

"For anybody in the CBD, your fibre is pretty much going into your building. It's right outside your door."

Vector is extending the network by 300km and Vodafone will be the first commercial customer to access the extension.

Green said the offers were a real opportunity for small businesses to cut the cord with Telecom.

Vector Communications general manager Maxine Elliot said it started to build the network in the central business district in 2000.

Vector already had ducting in the ground for electricity networks.

"It was just about leveraging that opportunity. When Vector purchased United Networks, it had a network on the North Shore, and joining them together it became Vector Communications."

"We have the ability to leverage the assets we have, and our electricity network needs fibre to manage it, so that's an added benefit for ourselves, and that's enabled us to keep growing the network."

Elliot said Vector has no plans for the residential broadband market, but would continue to explore options. Telecommunications Users Association chief executive Ernie Newman said the Vector move was yet more evidence of the excitement in the market as a result of the policy changes.

"We are seeing serious attractive offers coming into the market daily, and the fundamentals of the market have been absolutely changed and it's very good news for everyone."

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