Following a difficult time for the company, with falling 2007 revenues and the regulator forcing the company to split into separate operating units and allow competitors access to its copper-wire network, Telecom New Zealand’s CEO Paul Reynolds unveiled a five-year plan to reverse the company’s fortunes. It is forecasting large capital expenditure of up to NZD1.1 billion (USD943 million) in the financial year to 30 June 2009 to stem the decline and provide for long term growth. Spending priorities include building an IP platform to create a lower cost operating model and large scale investment in fibre to the node (FTTN) and a new 3G mobile network. Telecom also plans to reduce costs by as much as NZD300 million a year by 2013, moving call centres overseas and introducing more automation to handle customer inquiries. There are still tough times ahead for the telco, however, with the plan not expected to reach fruition until 2011.