GENERAL: TEL: Change to Telecom's Operational Separation Undertakings

28 May 2010 1:42 pm

TEL 28/05/2010 GENERAL

REL: 1342 HRS Telecom Corporation of New Zealand Limited (NS)

GENERAL: TEL: Change to Telecom's Operational Separation Undertakings

Media Statement from Minister for Communications and Information Technology

Change to Telecom's Operational Separation Undertakings

Communications and Information Technology Minister Steven Joyce has approved a third variation to Telecom's operational separation undertakings.

The undertakings, which set out the requirements for splitting Telecom into three separate business units, came into effect on 31 March 2008.

Telecom requested the variation to enable it to incorporate the capability to support ultra-fast broadband related services and processes. This particularly relates to the operational support systems being built to deliver the undertakings requirements.

Telecom has also recently proposed a fourth set of variations to the undertakings including changes to operational support system requirements to address what it considers are inconsistencies with the government's UFB initiative.

"The approved third variation will provide Telecom with time to design and incorporate capability to support fibre-based access services that will in future be available via the fibre infrastructure being funded through the Government's ultra-fast broadband initiative, irrespective of who secures that funding", said Mr Joyce.

"Where current access seekers have invested in systems to enable them to interface with new operational support systems to be provided by Telecom there is a requirement under this variation for Telecom to compensate them for any unnecessary capital expenditure."

"I will shortly be initiating a process to consider Telecom's fourth request for a variation to the undertakings and, as I have said previously, I will expedite Telecom's request through the usual process with an open mind."

Further information is available on the Ministry of Economic Development's website at www.med.govt.nz/operational-separation.

Media contact: Anita Ferguson 021 243 1623 End CA:00195501 For:TEL Type:GENERAL Time:2010-05-28:13:42:08

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