Boyd confirms commitment to Telecom

Monday 28th June 2010

Telecom's chairman Wayne Boyd said he remains committed to the phone company until it has completed its restructuring to participate in the government's broadband rollout.

Boyd, a member of Telecom board’s since 2004, said he is now at the stage of his career “where I can start looking forward to retirement” and will relinquish several directorships over the next few months. Still, he won’t step down from Telecom during the industry’s move to a new structure driven by the government’s Ultra Fast Broadband (UFB) plan.

“I remain committed to Telecom at this time of tumultuous change, and I commit to remaining at the helm as we navigate into the new industry structure, no matter what the outcome for Telecom,” he said in a statement to the NZX today.

Boyd is currently chairman of courier firm Freightways, Meridian Energy and Vulcan Steel, as well as a director of Sports and Recreation New Zealand, chairman of the New Zealand Blood Service and the New Zealand Hockey Federation.

Telecom is considering structural separation in order to participate in the Government’s UFB initiative, which threatens to undermine the dominance of the company’s national copper wire network.

“UFB will fundamentally reshape the local telecommunications industry,” Boyd said. “Telecom has to choose between structural separation and participation in UFB on one hand or to compete with state-funded infrastructure on the other.”

“We are currently thoroughly investigating the consequences of the choice in front of us and much will depend on the future shape of the regulatory environment, the conditions surrounding the Government's UFB investment, and ultimately what’s right for our shareholders,” Boyd said.

The shares fell 0.5% to $1.96 and have declined 27% in the past 12 months while the NZX 50 Index climbed 10%. The shares are rated a ‘hold’ based on the consensus of 13 recommendations compiled by Reuters.

Businesswire.co.nz

Comments from our readers

No comments yet