Incumbent Telecom New Zealand said it would not split its operations in June as it had not reached an agreement with the government yet on the ultra-fast broadband (UFB) project.
Back in December, it was announced that Telecom New Zealand had been…
Incumbent Telecom New Zealand said it would not split its operations in June as it had not reached an agreement with the government yet on the ultra-fast broadband (UFB) project.
Back in December, it was announced that Telecom New Zealand had been selected as preferred bidder to roll out UFB services in 25 regions, including Auckland and Wellington.
But the company has been asked to separate its infrastructure operations from its retail business to get a seat on the broadband initiative, because retailers are allowed to have only a minority share in the network.
“Based on initial timeframes for the UFB project, Telecom has previously indicated that it would aim to enact structural separation by the end of June 2011,” said Paul Reynolds, Telecom CEO, in a statement.
“However, that would have required Telecom to have reached a contractual arrangement with [state-owned] Crown Fibre Holdings last year for this timeframe to be achieved.
“In December last year, Telecom was confirmed as a negotiating partner for the UFB rollout and is now in detailed negotiations with Crown Fibre Holdings. However, the final timeframe for demerger will be determined when Telecom is able to reach an agreement.”
The UFB initiative aims to supply high speed internet through fibre to 75% of New Zealand homes over 10 years.
