Minister on Telecom announcement

The Minister for Communications and Information Technology, Steven Joyce, has received a request from Telecom for the government to consider a further variation to the company’s Operational Separation Undertakings.

Mr Joyce says he is conscious of the importance of certainty around the issues raised and will expedite Telecom’s request through the usual process with an open mind.

Telecom has previously asked for three variations to the Operational Separation Undertakings since they came into effect on 31 March 2008. The need for a process to allow variation of the Undertakings was envisaged at the time they were developed because of Telecom's unique position in the market.

“I also regard as positive Telecom’s announcement today that it is considering structural separation as a possible way to become involved with the government’s ultra-fast broadband roll-out," says Mr Joyce

“A potential structural separation of Telecom would involve a number of complex regulatory issues to work through. I am encouraging Telecom to work with Crown Fibre Holdings (CFH) and the Ministry of Economic Development.”

Mr Joyce says the CFH process provides for potential partners to raise regulatory issues that are relevant to any bids and Telecom is not the only industry player to have done so.

“There have been a number of positive recent developments from potential partners as momentum builds in the ultra-fast broadband initiative. Clearly potential partners are working hard to put their best foot forward.”

ENDS

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