Telecom: UFB timeframe challenging

Telecom says it’s evaluating the details of Crown Fibre Holdings shortlist announcement for the Ultra-fast Broadband initiative.

“We recognise that our bid is more complicated than those of other bidders, and that Crown Fibre Holdings does not have a mandate in the areas of RBI, regulatory reform and legislative change,” said Paul Reynolds, Telecom CEO. “Telecom’s proposal includes a potential structural separation by demerger in July next year. Telecom will need appropriate engagement with the whole of government in order to meet this challenging timeframe.”

Telecom said it remains open to partnership with other public and private sector owners of fibre assets, including the three parties prioritised for negotiation.

“Ultra-fast Broadband presents the opportunity to reshape the entire telecommunications industry to develop a world leading environment that delivers for customers, allows investment and competition to flourish and takes New Zealand forward,” Reynolds continued.

“We continue to believe that a national solution is the most efficient and effective way of delivering fibre to New Zealand while avoiding duplication and waste. We stand ready to work closely with the government to make sure that we can, in the spirit of partnership, make the most of this once-in-a-generation opportunity for New Zealand,” he added.

After not being named on the shortlist, Telecom shares fell 6%.