Telecom split becomes official
A plan to split New Zealand's biggest public company, Telecom, into separate business units has been formally approved by Communications Minister David Cunliffe.
The decision, effective on Monday, will see Telecom divided into three divisions - Networks, Wholesaling and Retailing.
An independent oversight group will monitor the process.
It's hoped the move will increase competition and improve New Zealanders' access to a wider range of broadband services.
Telecom chief executive Paul Reynolds says the company's formal separation into distinct business units paves the way for a new era in telecommunications.
He says Telecom staff have hit the ground running, with a number of very large infrastructure investment projects in train which will deliver more choice and better products and services for telecommunications users.
Reynolds says a central feature of the separation, Telecom's commitment to accelerated rollout of a world-class fast broadband network, is already underway.
He says installation of the 3,600 roadside cabinets that are the building blocks of this network is happening now.
Other major investment programmes, such as the rollout of our new mobile network, are also proceeding, he says.