More hugs for the company we love to hate

Paul Reynolds. Photo / Richard Robinson

Telecom has mended fences with the community but has not completely shed its image as the company that people love to hate, says its exiting chairman Wayne Boyd.

After yesterday's demerger meeting - which was also Boyd's farewell to shareholders - he said he took over as chairman in 2006 aiming to improve Telecom's relationship with the market. He wanted staff to be able to tell strangers at social gatherings, a barbecue or a party, that they worked at Telecom and not expect a barrage of criticism or gripes.

Boyd believes that goal has largely been achieved, but acknowledges negative views linger.

"One of the problems is that New Zealanders do not embrace large corporations," he said. "We do not recognise that companies with head offices based in New Zealand are very important for this country.

"In the past all New Zealanders thought they owned a share of Telecom but we did not embrace it, and did not understand also that we had to embrace our role in the community."

Telecommunications Users Association of New Zealand chief executive Paul Brislen said Boyd had been an open, affable antidote to his predecessor Rod Deane although he was a surprise replacement in 2006.

"He answered phone calls."

Boyd led, for want of a better word, a period of glasnost or openness at Telecom, Brislen said.

Boyd chaired Telecom during a revolutionary period of change. After years of anti-competitive practices, Telecom fell out badly with the Labour government which initiated stringent regulation. Under National it split its networks and retail arms so it could win the lion's share of the business for the Government's Ultra Fast Broadband initiative. The alternative was to find itself competing in a regulated market against a competitor working alongside the Government. Some critics question whether the UFB role between Chorus and the Government will revive market dominance issues.

The network company Chorus, which will be chaired by Sue Sheldon, had built a brand that people understand, Boyd said.

Telecom retail will be chaired by Mark Verbiest.

Boyd said it would be for the new board of Telecom retail to decide if it should be rebranded.