Telecom considers plan to split network

13 Jun 2006

Telecom New Zealand is mulling plans to separate its retail business from its networks division in an attempt to fend off a possible forced separation by the government. If completed, the move would mirror a similar initiative by BT Group which recently carried out an operational separation in the face of sustained pressure from the UK government. BT resolved its immediate problems with the authorities by setting up a new division with its own board, called Openreach, which has responsibilities to sell network services to rival operators. It is understood that two of Telecom New Zealand’s top officials – Mark Ratcliffe and Bruce Parkes – have visited a number of foreign telcos to discuss similar proposals.

New Zealand, Spark