A new unit is to be split from Telecom's Xtra Internet service to cater for the growing demand for electronic commerce services in the business and corporate world.
The move is a key step in Telecom's plan to put its entire business on the Internet, from customer service throughto every aspect of Web development and buying and selling.
Staff at Xtra have been given 10 days before the restructuring begins to provide feedback on the transition.
The Telecom group general manager of services, Theresa Gattung, told staff yesterday that Telecom planned to put considerable resources into creating the On-line Business Solutions group.
The company needed to evolve and keep pace with the on-line world by helping transform businesses into on-line operations.
The new unit will report to Telecom Services group and have a product and services development arm.
Spokesman Glen Sowry said it was fairly obvious which of the 150 Xtra staff would be employed by the new unit. There would be no redundancies.
Mr Sowry said the future of Xtra would become clearer once negotiations for an America's Cup super-site had been completed.
Virtual private networking services and electronic commerce solutions, including Business Builder, Commerce Builder and management of current business sites operated by Xtra, would move across to the new organisation.
It is believed Xtra will continue to host the sites.
The Telecom move comes in the same week that Telstra launched its on-line service for business clients.
The SureLink family of services include security, real-time validation of credit cards and settlement of funds in conjunction with the Bank of New Zealand.
The Telstra electronic payment service package was launched 18 months ago in Australia.
Customers simply enter their credit card details when registering and can then shop at any location with a SureLink icon.
Bill payment and business purchase ordering modules will be released later in the year.
