Commerce Commission alleges telco breached rules and deterred rivals.

Rival CallPlus is also considering legal action against Telecom after the Commerce Commission said Telecom didn't give equal access to rivals on its unbundled copper network.

The Government is defending its process for picking Telecom to set up the majority of the ultra fast broadband (UFB) network.

Telecom's split into a network company and service wholesaler and retailer now only hangs on a law change next month and a shareholder vote later this year, chief executive Paul Reynolds has told staff.

New Zealand's first charitable telecommunications trust will launch this week, promising to match prices offered by the major networks.

Telecom has withdrawn its international voice business from sale after failing to attract a suitable price.