Rival claims better phone deals likely

TelstraClear claims consumers can expect an explosion of better deals within the telecommunications market.

Telecom is breaking into three separate network, wholesale and retail divisions.

Spokesman Matthew Bolland says the changes will transform the sector and mean companies will not be restricted to offering only services that are similar to Telecom's. He says TelstraClear's been gunning for the separation for more than a decade.

Keith Davidson from the Internet Society says if Telecom does its bit, it should provide a robust framework for broadband.