Ripping up the landscape and laying fibre to the premise is a major undertaking, more than most people have any real understanding of, I wouldn't like to be the person that has to deal with resource consent and logistics around that.
Still, it must be done eventually...
Once your past that, the real issue is developing and supplying competitive services over the fibre, obviously you would be offering phone, internet and tv packages but they would have to offer some real advantages over existing services to justify the switch.
Media on demand, home business services and video telephony may play key roles here.
We will have most of the country done to the node by 2011, I don't really see the point in laying a fibre network parallel to what Telecom is already doing, I wouldn't think we even have the population to support such a venture. It could run into trouble early and end up a half assed roll out like Telstra's cable network.
My team is charged with moving everyone to the new cabinets when ready, its insane how much coordination is required between various companies to make it all happen, in the new year we will be migrating around 8 cabinets per day, perhaps as many as two or three thousand customers per day will be getting upgraded to ADSL 2+.
Except I'll be well gone by then, kinda glad because it will be mad busy and pretty stressful at times.