Feeds

Kiwi Telecom to split retail and wholesale operations

Wants to promote competition

Beginner's guide to SSL certificates

Telecom New Zealand (Telecom) has announced plans to create an "independent wholesale operation" in a bid to promote telecoms competition.

Today's confirmation that Telecom plans to separate its wholesale and retail operations follows growing speculation about the future of the Kiwi incumbent after the government raised concerns about its market dominance and the lack of broadband competition.

If successful, rival operators should be able to get equal access to Telecom's wholesale network, giving them greater scope to compete and invest in broadband services.

"The country expects world-class broadband services, and our decision to reorganise our business is one more step towards ensuring healthy competition exists to provide that," incoming Telecom chairman Wayne Boyd said.

"We have looked at a number of arrangements in place or under consideration around the world, including BT in Britain and Telstra in Australia. We now intend to initiate the best form of separation to suit New Zealand's conditions."

Among the proposals outlined today is the idea of creating a level playing field for all retail operators - including Telecom - with the whole separation overseen by an independent monitoring group.

Further details of Telecom's plans are due to be published early in August.

In May it emerged that the Kiwi government was planning to drive through a series of measures to force Telecom to unbundle the local loop and increase competition.

A raft of proposals - including LLU, increased regulation, and the promotion of investment by rival operators in fibre, wireless and satellite networks - were put forward as a way to drag New Zealand out of the bottom third of the OECD's league table of broadband countries.

Execs from Telecom visited BT and Ofcom to see what measures have been undertaken in the UK to improve competition. At the time industry onlookers said the visit showed that Telecom was considering the idea of splitting its wholesale and retail businesses to head off criticism from its own government. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Will BlackBerry make a comeback with its SQUARE smartphones?
Plus PC PIMs from company formerly known as RIM
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.