Telecom announces shake-up

12 May 2006

Telecom New Zealand says it will undertake a comprehensive review of its business in the wake of the government’s announcement that it is tightening the country’s regulatory regime. The government has unveiled plans which will force the telco to open up its networks to rivals in order to increase competition. Telecom’s chairman, Dr Roderick Dean, said in a statement: “Telecom understands that the public supports these changes. We are committed to reviewing our strategy and future planning to respond to the new environment.” He said the review will look at reshaping the firm’s overall strategy, including its wholesale arrangements, and will also cover the introduction of converged wireline and wireless services and the rollout of ADSL2+ broadband networks and VoIP services. Telecom’s share price has fallen more than 17% since the government announced its new regulations last week.

New Zealand, Spark New Zealand Group