Telecom NZ to create separate wholesale unit

Stuart Corner
Tuesday, 27 June 2006 18:20

IT Policy - Regulation

Telecom New Zealand has announced plans to create a separate, independent wholesale operation.
Incoming chairman, Wayne Boyd, said: “When this is set up, all players will be dealing with an independent wholesale unit which will operate according to a number of firm working principles.” 
These will include:
•    Equivalent service delivery processes and service levels for r wholesale customer;
•    Transparent external reporting of information so all customers;
•    Oversight by an independent monitoring group which will include industry and stakeholder representatives.

 “The provision of regulated services will be fair and transparent and it will be independently monitored to make sure it’s as good as we say it  is,” Boyd said.

 “We anticipate that with the creation of the independent wholesale unit, Telecom will work on a series of binding undertakings around the services that will be provided.

CEO Theresa Gattung said Telecom would give a further update on the review of the company’ s strategy, along with guidance on the operating outlook for 2006-07 and capital management when it delivers is full-year result on 4 August.

The company has given little detail of how it will create the separate wholesale unit. Boyd said: "We have looked at a number of arrangements in place or under consideration around the world, including BT in Britain and Telstra in Australia. We now intend to initiate the best form of separation to suit New Zealand’s conditions.

Telstra was required to create separate wholesale and retail operations but embraced the concept with little enthusiasm. Its initial proposals were knocked by the Government earlier this year as being inadequate and its revised proposals accepted only last week.