The New Zealand government has approved Telecom New Zealand’s plan to split its assets following its structural separation that will divide the company’s retail and infrastructure units.
“Telecom’s Asset Allocation Plan identifies how assets and…
The New Zealand government has approved Telecom New Zealand’s plan to split its assets following its structural separation that will divide the company’s retail and infrastructure units.
“Telecom’s Asset Allocation Plan identifies how assets and liabilities will be split during Telecom’s proposed demerger and the key terms of all intended material sharing arrangements,” read a statement from the Ministry for Communications and Information Technology.
In late May, Telecom NZ said it would carry out structural separation, after officially winning the bid to build the country’s US$2.8bn ultra-fast broadband project (UFB).
Since retailers are only able to take a minority stake in the UFB, Telecom NZ has agreed to separate into an infrastructure operator and a retailing company.
While the retail business will retain the Telecom NZ brand name, the infrastructure business will be called New Chorus. The demerger is still subject to a shareholder vote later this year.
In the statement, the Communications Ministry said: “Under structural separation, the New Chorus will be the main provider of fixed-line telecommunications infrastructure and there will be an even playing field between all retailers including the new Telecom.”
After the demerger, Telecom NZ’s assets will include the mobile network, the service platforms for voice and data applications, and the OSS/BSS for end-to-end services.
New Chorus’s assets will include the local access fibre, copper and physical infrastructure in New Zealand and the OSS/BSS for managing wholesale service provider customers.
Steven Joyce, the MCIT minister, added: “In making my decision to approve Telecom’s plan, I consulted with the Telecommunications Commissioner who agreed that the asset allocation plan met the requirements of the Telecommunications Act.”
The UFB initiative is expected to deliver fibre connectivity to schools, hospitals and 90 percent of businesses by 2015, and to three-quarters of all New Zealanders by 2020.
