KEY POINTS:
Telecom is seeking a partnership with Government to provide better broadband services to rural areas.
Chief executive Paul Reynolds said the company was interested in a collaborative model to help Telecom build a network where it would not invest on its own.
"I've already said publicly that Telecom
would leave no stone unturned in its desire to work with government - both central and local - and others to find ways of extending even further the reach of the fast broadband network we have committed to," said Reynolds.
Telecom yesterday submitted to the Government its final plan for a split into three divisions - retail, wholesale and network units. It also reiterated its commitment to build a high-speed broadband network.
Telecom had previously stated it would roll out fast broadband of at least 10 megabits per second to towns with 500 or more lines via the ADSL2+ technology and fibre networks closer to customer premises, approximately 80 per cent of New Zealanders.
Last month at the Digital Future Summit, Communications Minister David Cunliffe said the government would like to see 90 per cent of New Zealanders able to get broadband at speeds of 10 Mbps.
However, he said a barrier to the investment needed to achieve this goal was the reluctance by traditional telcos to accept the lower levels of returns and longer time horizons inherent in high-speed network investment.
Cunliffe will shortly make a decision on whether to accept Telecom's separation plan or send it back to the company for further amendments.
The Government-imposed breakup of the phone giant is aimed at introducing greater competition into the telecommunications market for the benefit of consumers.
Telecom said it was well advanced in preparing for "separation day" - March 31 - when the split becomes official.
It has appointed chief executives for its wholesale and network divisions, Matt Crockett and Mark Ratcliffe, respectively. Simon Moutter, current chief operating officer, business, is overseeing the retail area until an appointment is made.
The company said it is well advanced in finding a replacement for chief financial officer Marko Bogoievski who steps down in January. Telecom shares yesterday closed down 4c to $4.32.
GREEN LIGHT FOR WIRELESS PLANS
The conclusion this week of an auction of radio spectrum suitable for wireless broadband will have several telcos dusting off their wireless plans.
Malcolm Dick of CallPlus, which paid $500,000 for a chunk of spectrum, said the internet and phone company would focus on building services using the new mobile WiMAX technology.
"Next year will be a planning year towards that, however, we will be still rolling out the [fixed] WiMAX technology that we have already got," said Dick.
CallPlus, under its wireless brand Blue Reach, has built a wireless network in Whangarei and plan to continue deploying the technology in Auckland.
CallPlus would also begin building wireless alternatives to the copper network in other cities using existing spectrum it owned when it was confident of the new mobile WiMAX technology, said Dick.
Dick said: "we're not trying to do a mobile replacement network."
Wireless operator Woosh is also looking at WiMAX technology, hoping to use it as a replacement for its current network which has been unable to keep pace with broadband speeds offered by fixed-line operators.
Chief executive Kevin Wiley said Woosh had been in "preliminary" talks with several hardware vendors, but spectrum ownership now gave the company more certainty.
He said Woosh were likely to begin WiMAX network deployment in Hamilton where it already had resource consent for the building network infrastructure.
Telecom and Vodafone said there were no immediate plans for using the spectrum.
