Technology news and Jobs arrow Telecommunications arrow NZ Gov't faces tough call on Telecom NZ split
NZ Gov't faces tough call on Telecom NZ split E-mail
by Stuart Corner   
Sunday, 27 January 2008


In addition, InternetNZ said: "The remaining elements of the undertakings will need to be strengthened...given the undertakings do not in places meet the minimum requirements of the determination... InternetNZ recommends that the current draft undertakings not be accepted, and that the minister use his powers under the Act to amend parts of the undertakings to achieve an operational separation that meets the Act's requirements and that can achieve the long term benefit of end users."

TUANZ agreed: "To be "robust', the operational separation set out in the voluntary undertaking must pass the test that employees of the separated business units will not retain significant motive and opportunity to place Telecom Group commercial performance above the commercial performance of the separated units, and Telecom Board and CEO will not have the opportunity to impose Group priorities on [the network] or wholesale [units] to the detriment of opportunity for other service providers. We consider that the revised draft undertaking fails the test on both of these criteria, and that accordingly the minister ought not to approve it."

TUANZ also had a number of significant concerns with other aspects of Telecom NZ's plan. The minister has not yet indicated how he will proceed. The new operational separation regime is due to come into effect on 31 March 2008.

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