TelstraClear not wanting to help the NZ Internet public

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It's all about peering Internet traffic ... huh? Try this Wikipedia explanation:
Peering is voluntary interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the customers of each network. The pure definition of peering is settlement-free or "sender keeps all," meaning that neither party pays the other for the exchanged traffic, instead, each derives revenue from its own customers.
Back in the good old days (before 2004) both Telecom and TelstraClear peered quite happily. This meant your request for a local NZ site didn't have to shoot off on a pointless round trip to the USA but was handed on in the fine community spirit the Internet was built upon.

Telecom are trialling a peering environment again (top marks!) but TelstraClear don't see any benefit to their bottom line - read the full Computerworld article and notice how TelstraClear talk about what's (not) in it for them but never once refer to the user experience or the wider NZ environment.

Much like Vodafone's original move to lock handsets I suspect this will be a decision that is overturned in the not so distant future.

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