The Government will this morning release a hotly anticipated paper on the operational separation of Telecom which will set the tone for future growth of the industry.
It is widely expected that the plan will see Telecom split into wholesale, retail and network access units. The network access
group should have its own brand and head office.
Telecom would have preferred a structural separation which would have seen its retail and wholesale operation under light regulatory management. The network could then have been split off into a separate company that could be sold.
The announcement was expected to be another nail in the coffin for Telecom's old role as "a stubborn monopoly".
Telecommunications Users Association chief executive Ernie Newman said Communications Minister David Cunliffe's discussion paper would be closely examined, with subtle choices in wording expected to have a big impact on the industry.
It was the first time the industry had a chance to look at Government plans for the break-up which until now had been debated between politicians and Telecom, he said.
No one expects any big surprises.
One senior telecommunications industry source said: "What we'll get [today] is the final determination, which is essentially the final shape of the operational split for Telecom.
"That's been well flagged but the final detail will be in the minister's release. We've had the draft determination and they talked about a separate access network. There has been an extensive consultation process across the industry."
Telecom will then be required to submit a series of undertakings - effectively a plan for making the split happen - which will go to the public for reaction. Then the process will be finalised closer to Christmas.
Telecom said the company would "comment and react in more detail when we ourselves have seen the minister's determination". Telecom shares closed up 3c yesterday at $4.30.
