New Zealand sets requirements for Telecom separation (New Zealand)The New Zealand minister of communications has issued a directive detailing the requirements for the planned functional separation at Telecom New Zealand. The directive deals with the scope and governance of the required access network services unit, which will manage the local access network; the basis for local loop unbundling and bitstream access; migration of existing services to the new organisation; structure and powers of the independent oversight group; and a range of safeguards based on the principles of standalone, arms-length, equivalence and non-discrimination. In response, Telecom said it was a “demanding” programme and it would work on its proposals for implementation and undertakings over the next four weeks. The reorganisation is expected to cost NZD 200 million in capital expenditure over the next four years, with operational costs of up to NZD 40 million per annum over this same period. Telecom has already set up a wholesale unit and will start work on the separate access network services unit. The operator denied any talk of selling the ANS unit and said no jobs will be cut due to the restructuring. According to unsourced media reports, Telecom agreed with the government to sell the network unit, valued at more than NZD 3 billion.
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