Telecom NZ considers structural separation

bealtine

Telecom New Zealand has confirmed that it is fully investigating structural separation in order to participate in the government’s Ultra Fast Broadband (UFB) initiative. However, “in making a thorough assessment of structural separation we need to have a detailed understanding of the regulatory environment, and this warrants detailed discussion and analysis with Government before any decisions regarding its viability can be made,” CEO Paul Reynolds said in a statement. Telecom has asked the telecommunications minister to consider a variation on three components of Telecom’s undertakings that will no longer be relevant in a fibre future.


The proposed changes are to:

* Suspend the forced bulk migration of existing broadband customers onto a new copper-based broadband service. However, the company will continue to supply this new broadband service to all new customers;
* Remove the requirement for Telecom to migrate 17,000 customers onto a new VoIP over copper service by the end of this year; and
* Remove the requirement for Telecom to build a new set of wholesale systems that are not consistent with the industry structure implied by UFB.

clohamon

A happy consequence of governments getting serious about fibre is that the incumbent's share price starts to tank. (see also Australia)

Telecom's share price dropped to an all-time low yesterday after chief executive Paul Reynolds said the company could split off its network division. Shares closed down 11c at $1.85.
On Monday, Reynolds said Telecom was committed to being a part of the Government's $1.5 billion plan to roll out ultra-fast broadband internet.

http://www.nzherald.co.nz/markets/news/article.cfm?c_id=62&objectid=10647430


That is no bad thing if nationalization is in prospect.

Tom Young

I don't think nationalisation here is a valid prospect. Despite what IBEC might want.

bealtine

Tom Young wrote: »

I don't think nationalisation here is a valid prospect. Despite what IBEC might want.

I doubt the EU would allow it.

clohamon

bealtine wrote: »

I doubt the EU would allow it.

I'm only suggesting the wholesale division. I don't think there's anything in EU law prohibiting state ownership of a network.

Of course, its academic; the Minister is locked into a strategy of competition.

How that works where there's no competitor is hard to figure.

bealtine

clohamon wrote: »

Of course, its academic; the Minister is locked into a strategy of competition.

How that works where there's no competitor is hard to figure.

He's locked into an illusion of competition.