Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Govt approves Telecom's asset allocation plan

Govt approves Telecom's asset allocation plan

The government has approved Telecom's plan to split its assets after structural separation - the first major step in Telecom's proposed demerger process.

Telecom's Asset Allocation Plan identifies how assets and liabilities will be split during Telecom's proposed demerger and the key terms of all intended material sharing arrangements.

The Minister for Communications and Information Technology, Steven Joyce, says the approval of the plan kick-starts the most significant telecommunications industry change in the past 20 years.

"Should Telecom's shareholders vote in favour of the demerger, Telecom will be the first telecommunications company of its size to undergo voluntary structural separation."

Under structural separation, the new Chorus will be the main provider of fixed-line telecommunications infrastructure and there will be an even playing field between all retailers including the new Telecom.

Telecom has proposed to structurally separate in order to be able to participate in the government's $1.35 billion ultra-fast broadband initiative. This means that Telecom's network arm (Chorus) will not be able to offer retail services.

"In making my decision to approve Telecom's plan, I consulted with the
Telecommunications Commissioner who agreed that the asset allocation plan met the requirements of the Telecommunications Act," says Mr Joyce.

The Commerce Commission will closely monitor and enforce the sharing arrangements that are outlined in the plan. This involves ensuring that the arrangements are on arm's length terms, unlikely to harm competition, and will protect confidential customer and commercial information.

The need for transparency is important for Telecom's shareholders and the telecommunications industry. Telecom made a draft overview of the plan publicly available on its website on 26 July 2011.

The Telecom demerger is subject to a shareholder vote later in the year.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Supermarket Scam, And On Tunisia’s Scrapping Of Democracy

Are we paying too much for our groceries? Hmm. Is the Pope a Catholic? Given that the two Australian supermarket chains that dominate our grocery industry routinely rack up profits in the order of $22 billion annually, that’s a no-brainer. Yet as with New Zealand’s other socio-economic problems created by our 1980s reforms, the practical solutions seem pretty thin on the ground... More>>


Government: Bill Introduced To Protect Against Conversion Practices

Legislation has been introduced to Parliament to protect against practices intended to change or suppress someone’s sexual orientation, gender identity, or gender expression... More>>


Government: Welcomes Draft Report On The Retail Grocery Sector

The Commerce Commission’s draft report into the retail grocery sector is being welcomed by Government as a major milestone. “I asked the Commerce Commission to look at whether this sector is as competitive as it could be and today it has released its draft report for consultation,” Commerce and Consumer Affairs Minister, David Clark said... More>>


Child Poverty Action Group: Poverty Burden For Children Increased Due To Government Neglect - New Report

Poverty, inequity, homelessness and food insecurity are among the burdens which increased for tamariki Māori and other children in the first year of Covid-19 - partially due to Government neglect... More>>

NZUS Council: Welcomes Nomination Of Senator Tom Udall As US Ambassador To NZ

The NZUS Council welcomes the nomination of Senator Tom Udall to the role of US Ambassador to New Zealand and Samoa, NZUS Council executive director Jordan Small said... More>>

BusinessNZ: Visa Extensions Welcomed
BusinessNZ has welcomed the extension of some critical skill visa durations and changes to immigration systems to speed processing. Chief Executive Kirk Hope says move acknowledges advocacy by the hospitality sector, the BusinessNZ Network and others, and comes not a moment too soon.... More>>

Social Development: Government Initiatives Contribute To Fall In Benefit Numbers

Minister for Social Development Carmel Sepuloni has welcomed the release of the June quarter Benefit Statistics which show a continuing fall in the number of people receiving a Main Benefit... More>>




InfoPages News Channels