Consumer supports Telecom split

26 September 2007

Consumer supports Telecom split

Consumers' Institute fully supports the announcement today that Telecom will be operationally split into three separate units.

Chief executive Sue Chetwin said: "This is a step in the right direction to release consumers from Telecom's stranglehold over internet and telephone services. For too long consumers have put up with high prices, unreliable access, and slow internet speeds because of Telecom's monopoly.

By breaking up that monopoly, the government is ensuring more competitors can enter the market meaning increased competition. Real choice means better services and lower prices for internet consumers.”

Communications Minister David Cunliffe announced the split, including harsh penalties if Telecom did not complete the separation by 31 March, 2008.

Chetwin said the operational split, combined with the slow roll-out of local loop unbundling and other measures taken by the government, would take time to implement.

“Our hope is that they won't allow delaying tactics that will slow the availability of improved services to New Zealanders. But the trend is that better days are coming for telecommunications customers in New Zealand , and it's long overdue."

ENDS

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