Source AP ©

Telecom Corp to be split into three separate operating units

Telecom Corp. will be split into three separate operating units by early next year as planned.

The split of the country's biggest fixed line phone company by subscribers into wholesale, retail and networks arms would have to occur by March 31, 2008, Cunliffe said.

Telecom Corp. now has 20 working days to prepare a draft separation plan, he said.

"I have issued my determination ... for a robust three-way operational separation as the next formal step toward finalizing legally enforceable undertakings by Telecom," Cunliffe said in a statement.

Operational separation of the group is a key part of the government's strategy to deliver a more effective and competitive telecommunications sector.

The separation, along with plans to open Telecom's local loop network to rivals from later this year, is designed to foster competition, particularly in high-speed Internet services.

"It will underpin increased competition and efficient investment for the long term benefits of all New Zealanders," Cunliffe said.

Under the split-up Telecom will be required to set up a separately branded networks unit and operate its divisions at arms length. Telecom will also have to establish an independent oversight group to monitor the businesses.

Cunliffe denied a media report that Telecom had struck a deal with the government to sell its fixed-line network business to avoid the three-way split of its business.

Telecom shares closed at NZ$4.30 (US$3.19; 2.26 EUR) Tuesday and rose one cent to NZ$4.31 (US$3020; 2.27 EUR) shortly after the New Zealand stock market opened Wednesday.

Comments
The neverending containment of Russia
Trump's Dystopian Budget Proposal
Russia's S-400 missiles lost in storm during transportation to China
Christchurch aftermath: Invaders complain of invaders
Christchurch aftermath: Invaders complain of invaders
Massacres of Muslim Worshipers in Christchurch: Tragic Insanity at Place of Worship
Christchurch aftermath: Invaders complain of invaders
Putin reacts to Kazakhstan president's resignation
Putin reacts to Kazakhstan president's resignation
The Recolonization of Latin America and the War on Venezuela
Christchurch aftermath: Invaders complain of invaders
Christchurch aftermath: Invaders complain of invaders
Christchurch aftermath: Invaders complain of invaders
World's Leading Human Rights Abuser USA
World's Leading Human Rights Abuser USA
World's Leading Human Rights Abuser USA
Christchurch aftermath: Invaders complain of invaders
Putin addresses social issues, threatens USA with Russia's new missiles in his 15th Federal Assembly speech
The Recolonization of Latin America and the War on Venezuela
Hot drinks trigger esophageal cancer, new study says
Christchurch aftermath: Invaders complain of invaders