Telecom will hang on to network division, new CEO says

4 Oct 2007

Telecom New Zealand’s incoming chief executive officer Paul Reynolds says his company intends to hold on to its network division, contradicting an earlier decision to sell the unit, set to be created under government plans to split the company into three operational units to provide retail, wholesale and network services. On 26 September the New Zealand government announced that it was going ahead with plans to split the national PTO into three, with Communications Minister David Cunliffe saying the process would be carried out by end-March 2008 with the aim of creating a more level playing field in the telecoms market. The reorganisation, which was first announced in April, is expected to cost around NZD200 million (USD148 million) over four years and an independent oversight group is being created to monitor the process. Telecom has already begun setting up a wholesale division and is soon to begin the process of separating its network business. In the wake of rumours that Telecom was looking to sell off its access unit Paul Reynolds said: ‘I have no plans to sell our network … We are fundamentally a communications business and founded on running a network. I have no plans to change that.’

New Zealand, Spark