Cautious reaction from Telecom on regulatory package

Cautious reaction from Telecom on regulatory package

By Pattrick Smellie

Feb. 16 (BusinessDesk) – Telecom Corp. reacted cautiously to the release of a proposed new regulatory framework that would come into force if the company separates into two companies to participate in the government’s ultra-fast broadband scheme.

Concerned as much as anything to prevent any perception of a “done deal” while it continues to negotiate with the government’s UFB vehicle, Crown Fibre Holdings Ltd., Telecom said only that the proposals followed the Ministry of Economic Development’s consultation process and that the company would “participate actively, along with other industry players, in the select committee process.”

“While this is enabling legislation, these legislative changes are predicated on Telecom reaching commercial agreement with Crown Fibre Holdings,” said Telecom chief executive, Paul Reynolds, in a brief statement.

“Telecom remains focused on its on-going intense commercial negotiations with Crown Fibre Holdings.”

Telecom shares were unchanged in NZX trading this morning, at $2.24.

(BusinessDesk)

© Scoop Media