As part of its agreement with the Crown, network-operator Chorus will become a separate public company and deploy thousands of kilometres of fibre internet cables in 24 towns and cities around New Zealand.
Telecom will then become a standalone retail business selling phone, internet, IT and some wholesale services.
In draft separation plans released by the company in July, the split would see Chorus get the copper network and Telecom most radio towers and mobile phone infrastructure.
The new Telecom would keep ownership of Australian-based AAPT as well as its 50 per cent stake in the Southern Cross submarine internet cable between Auckland, Sydney and Los Angeles.
Despite Chorus being the key player in the Government's ultra-fast broadband scheme, Telecom will still own some of the fibre backhaul running up and down the country.
Craigs Investment Partners' Geoff Zame said in July the cost of the split could be between $200 million and $400 million.
Forsyth Barr's Guy Hallwright estimated the breakup would add $300 million to Telecom's capital expenditure.
In Telecom's full-year financial results this month, the company wrote off $275 million from copper assets that would no longer be relevant to either company if the split goes ahead.
The company's stocks have climbed almost 80c since April and are tipped by some analysts to reach almost $3.
Telecom shares closed down 3.5c yesterday at $2.73.
