KEY POINTS:
The operational separation of Telecom should be completed by the middle of next year, Minister of Communications David Cunliffe said yesterday.
Legislation to open Telecom's network to competitors with the aim of establishing faster and better broadband was passed under urgency with an overwhelming majority in Parliament yesterday.
"We now have a clear, firm mandate from the people of New Zealand," Cunliffe said. "Kiwis are demanding fast, 'all you can eat' broadband, which the legislation is designed to deliver."
The law was passed less than six months after being introduced to Parliament in June after a Government review.
The Government will use the Telecommunications Amendment Act to force Telecom to split into three units - a wholesale, retail and a network access group.
Cunliffe said yesterday that his office, alongside the Ministry of Economic Development, would manage Telecom's split and finalise the requirements of an initial plan for Telecom's separation by February.
He will then invite public submissions on the plan, which could be further amended, and then has the power to approve or decline the plan.
"I think it would be an optimist who thought it would be perfect first time, but there is so much detail to be gone through," said Cunliffe.
Once the undertakings are sealed then the operational monitoring of Telecom would be up to the Commerce Commission, he said.
He said he was "very conscious" of the need going into the next budget round for the Ministry of Economic Development and the Commerce Commission to play an increasingly important role in the sector.
The legislation strengthened the powers of the commission in allowing it to be proactive and to conduct multilateral determinations regarding Telecom, said Cunliffe.
"We see the commission as a vital office in going forward, so this in no way represents the Government reducing the power or scope of the commission."
Cunliffe also said next year it would look with "renewed vigour" at the development of the IT sector, developing its rural strategy, rolling out further digital strategy funds and new broadband wireless services.
