Joyce gives Telecom more time for separation
Joyce gives Telecom more time to get systems in place for operation separation
by Paul McBeth
Nov. 20 (BusinessWire) – Communications Minister
Steven Joyce has granted Telecom Corp. nine months to cut
down potential information-sharing among its units as part
of the company’s government-enforced operational
Telecom asked for an extension to implement the logical separation of its shared information systems, which contain confidential client information.
The separation would prevent the wholesale and retail units of the country’s largest phone company from accessing this information. State-owned Kordia Group and lines company Vector Ltd opposed the variation, saying it will give Telecom an unfair competitive advantage.
Joyce has given Telecom until Sept. 30 2010 to integrate the system. He also exempted a small number of old Public Switched Telephone Network (PSTN) information systems that contain technical information about the network.
PSTN refers to the world’s international telephone system based on copper wire which carries voice data.
The phone company was forced to split its network, wholesale, and retail services by the previous administration amid claims the integration of the company was holding back much-needed investment in the nation’s broadband infrastructure.
Shares in Telecom rose 0.4% to $2.58 and have climbed about 12% this year.
Joyce also approved a variation which will require Telecom to keep the Independent Oversight Group and Commerce Commission updated on “key undertakings-related work programme items” to improve the monitoring of areas that are slipping behind the timetable.