Government approves Telecom split
The government has approved Telecom’s separation plan, leaving only one more step in the demerger between the giant telco and its network arm, Chorus.
ICT Minister Steven Joyce says Telecom’s asset allocation plan, released in July, meets the requirements of the Telecommunications Act.
The only remaining step for Telecom is a shareholder vote, to be held later this year.
"Should Telecom’s shareholders vote in favour of the demerger,” Joyce says, "Telecom will be the first telecommunications company of its size to undergo voluntary structural separation.”
Telecom offered to make the split as part of its bid for a role in the government’s Ultra Fast Broadband (UFB) initiative.
Labour communications spokesperson Clare Curran has accused the government of playing favourites in the bidding process. Go here to read more.