[ Last Updated 5 April 2007 ]
Short Description
Communications Minister David Cunliffe has released the government's consultation document on the operational separation of Telecom New Zealand.
Author
Hon David Cunliffe, Minister of Communications
Communications Minister David Cunliffe has released the government's consultation document on the operational separation of Telecom New Zealand.
"The operational separation of Telecom is one of a number of reforms this Labour-led government is implementing following last year's Stocktake review and the passage of the enabling legislation," Mr Cunliffe said.
"The reforms are expected to deliver a more effective telecommunications sector with increased competition and efficient investment in infrastructure and services for the long-term benefit of end-users.
"For too long, we have languished near the bottom of the OECD tables for broadband and telecommunications sector performance, and it became clear that without significant change to the competitive environment, our poor performance was destined to continue."
Part 2A of the act sets out the legislative process for the minister to approve binding and enforceable operational separation undertakings (which form part of a "separation plan") made by Telecom.
The process provides for the minister to issue a detailed determination of further requirements, over and above those already set out in the act, with which Telecom's operational separation plan must comply.
"Since the passing of the legislation last December, the government has been doing the detailed work on how best to separate Telecom New Zealand into at least three separate business units," Mr Cunliffe said.
"I welcome public and industry views on whether the draft proposals strike the right balance given New Zealand's unique circumstances. Those views will help guide me as I decide on the requirements that will be built into my determination.
"Following the issuing of the final determination, Telecom will have 20 working days to prepare a draft separation plan. Industry stakeholders and the public will be invited to provide their views and comments on the draft separation plan."
Consultation on the initial model for separation will be conducted over the next three weeks, with submissions to be provided to the Ministry of Economic Development no later than 5:00pm on Friday 27 April 2007.