New Zealand Government tables Telecom structural separation legislation

Stuart Corner
Wednesday, 16 February 2011 16:16

IT Policy - Regulation

The New Zealand Government has tabled the legislative changes that would apply if Telecom NZ were to structurally separate, as it has proposed to do should it be selected to rollout the Government's Ultra-Fast Broadband network.

The legislation has been tabled with the Select Committee Office as a supplementary order paper (SOP): amendments to current telecommunications legislation that will be considered alongside the Telecommunications (TSO, Broadband and Other Matters) Amendment Bill.

"Tabling of the SOP at the Select Committee stage provides industry and customer groups with an important opportunity to input into the regulatory changes associated with any potential Telecom separation," the minister for communications and information technology, Steven Joyce, said.

"It is also important that government is clear about the regulatory environment proposed after any de-merger, so that Telecom shareholders can make an informed judgment on whether to de-merge or not should that proposal proceed."

According to Joyce, "The proposed amendments have been designed to preserve protections for end-users and competitors, reduce unnecessary costs and complexities, and ensure Telecom is neither unduly advantaged nor disadvantaged by de-merging in areas such as tax and land access."

The Government announced in December that it had commenced 'priority negotiations with Telecom NZ for it to provide the UFB in 25 areas, but Joyce said today that no decision had yet been made on what role, if any, Telecom would have in the UFB.

In a statement issued in response to the tabling of the SOP, Telecom NZ, CEO, Paul Reynolds said: "Telecom remains focused on its ongoing intense commercial negotiations with Crown Fibre Holdings."