Update on the Separation of Telecom - Minister of Communications Media Statement

Communications Minister David Cunliffe has provided an update on the process for the separation of Telecom.

"I am currently progressing the development of my requirements for the operational separation of Telecom as required by the Telecommunications Act, with the intention of finalising it shortly," Mr Cunliffe said.

"At the same time the government will be entering a dialogue with Telecom with a view to determining whether an approach based on a structural separation of Telecom's access network has the potential to better meet the aims and objectives of the act.

"While most in the industry have indicated that operational separation should proceed as planned, there was also a significant voice calling for the consideration of a structural option.

“The government agrees that there is potential for structural separation to provide additional benefits under certain conditions. But we are also conscious of the need for rapid progress to provide the industry, including Telecom, with the certainty they need to move forward with confidence.

"To that end, I reiterate my recent public statements that we will not be revisiting the policy framework of the recently updated Telecommunications Act. The act is fundamentally sound, and based on world-best regulatory practice." Mr Cunliffe said.

"The discussions with Telecom will be held on a tight timeframe.

"While there is a need to properly consider the issues, the window is small. If an unambiguously better way forward is not evident within two months, the plan I have previously consulted on will be implemented.

"My expectation is that the statutory requirements for operational separation should be able to be completed by the end of this year," the minister said.

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