"FX Networks and Telecom Wholesale today confirmed their agreement for the exchange of local internet traffic at 19 of Telecom’s points of interconnection around the country. The agreement is the culmination of years of effort by Telecom, FX Networks and other industry players, to lay the groundwork for the most efficient routing of New Zealand’s growing volumes of Internet traffic. Local internet interconnection, or peering, is important as it provides more efficient routing of national traffic, allowing traffic to be exchanged on a local or regional basis rather than transported back and forth throughout the country to be exchanged in Auckland. With the Government’s $1.5bn ‘Ultra Fast Broadband’ and $300m ‘Rural Broadband initiatives both on the horizon, the agreement paves the way for a whole new range of competitive broadband packages to be developed by ISPs and other service providers."
"In the past when New Zealand only had one telecommunications network this was never an issue but with the rise of the internet over the last two decades and its underlying model of a network of networks a new approach was needed that is fair for users and network operators."
- http://www.fx.net.nz/FX%20Networks/News/FX%20Networks%20and%20Telecom%20Wholesale%20announce%20major%20breakthrough%20for%20all%20internet%20users (view on Google Sidewiki)