Telecom says separation timetable depends on UFB

Wednesday 19th January 2011

Telecom said its goal of structurally separating its business by the end of June this year will not be achieved as it was unable to sign a contract for the Government's ultra-fast broadband (UFB) project last year.

The company said today it would announce a revised timeframe for the structural separation of its business upon entering into a contractual arrangement with Crown Fibre Holdings for the UFB project.

In December last year, Telecom was confirmed as a negotiating partner for the UFB rollout and it is now in detailed negotiations with Crown Fibre Holdings.

The company has proposed splitting into two separate companies as part of its proposed package for involvement in UFB.

"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's chief executive officer.

"However, that would have required Telecom to have reached a contractual arrangement with Crown Fibre Holdings last year for this timeframe to be achieved."

The final timeframe for demerger will be determined when Telecom is able to reach an agreement for the UFB project.

NZPA

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