Communications Minister David Cunliffe says the full effects of faster internet may not be felt for another 2 years.

He's told the Telecommunications Users Association that the public and the industry need to be realistic about when the unbundling of the local loop will take effect.

But Cunliffe's adamant the status quo hasn't been working as it has been restricting the development of effective competition.

He says the Government intends to introduce a Telecommunications Amendment Bill into the House soon after mid-year.