Joyce extends deadline for Telecom unbundling

Wednesday 17th June 2009

Communications and IT Minister Steven Joyce has pushed out the timetable for Telecom to unbundle the local loop and backhaul services after the nation’s largest telecommunications provider put up an alternative for its operational separation in April.

The Minister approved the variation, which will delay unbundling by six to 12 months, and said it is “expected to significantly improve the delivery” of wholesale services to other providers.

The variation “better meets the purposes of the Telecommunications Act than do the existing undertakings,” Joyce said. “Variations to the separation undertakings were envisaged from the outset in order to accommodate changing circumstances.”

Telecom chief executive Paul Reynolds wrote to Joyce earlier this year seeking changes to the scheduled split of its wholesale and retail businesses, which would prioritise adjustments to the company’s back-end systems across the customer coal-face.

Joyce expects Telecom to extend its offer to rival Vodafone New Zealand of “risk mitigation plans and regular progress briefings” to other service providers interested in taking up such an offer.

Three competitors who made submissions on the variation supported the change, he said. The telecommunications company will offer the same deal to everyone interested in accepting it, according to spokesman Mark Watts.

He said the changes allow the telecommunications provider to focus on creating a firm foundation for its wholesale services.

“When you’re building a house you wouldn’t start from the attic,” he said.

The shares were unchanged at $2.57 on the NZX 50 Index today, and have gained 14% in the year-to-date.

Businesswire.co.nz

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