Feeds

Telecom NZ splits in two

Groundhog day as roll out starts on Kiwi broadband network

Designing a Defense for Mobile Applications

Telecom New Zealand will spin off its network operations, branded Chorus, into a separate listed company by year end.

The split comes at New Zealand’s incumbent telco embarks on building part of a national government funded ultrafast broadband network after securing a tender for 70% of the deployment. Work on the network will start in August covering 24 regions, including Auckland, Wellington, the lower North Island and most of the South Island.

The structural separation, will result in two listed entities on the stock exchange and still requires a law change and shareholder approval.

Following the de-merger Telecom NZ will be a retail-focused telecommunications business comprising fixed, mobile and ICT businesses. It will also provide some other non-regulated services to the industry, such as national backhaul and certain commercial wholesale services.

Chorus will be a nationwide fixed line access network infrastructure operator that will offer services to RSPs (retail service providers) on an open access basis to allow them to build and deliver innovative services to New Zealand end-users.

Under the agreement, the government's Crown Fibre Holdings will invest NZ$929 million in Chorus through a mix of debt and equity as the broadband network is built.

The government investing a total of NZ$1.5 billion to build the national network, promising to deliver high speed internet to 75% of the country by 2019.

Meanwhile Telecom NZ has registered a new trade mark, 1 Mobile, to support a multi-brand strategy in the mobile market.

The company has yet to comment on the new branding strategy but speculation suggests that it plans to launch a low-cost brand to sit beside current mobile offering, XT and go head to head with the latest budget brand to enter the market, 2degrees. ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.