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Telecom NZ closer to decision over separation

Telecom NZ closer to decision over separation

Telecom NZ (ASX:TEL) is still determining whether the benefits outweigh the costs of structural separation, but is making some headway, according to chairman Wayne Boyd.

In a letter to shareholders Boyd said that any decision to structurally separate would need to be in the best interest of shareholders, and would require their approval.

“We are at the start of deciding if the benefits do indeed outweigh the costs, and will keep you informed as we work through this very complex issue,” he said.

Telecom NZ will have to separate its retail and wholesale divisions if it wants to participate in the government's Ultra-Fast Broadband (UFB) project - just like its Australian equivalent Telstra (ASX:TLS) with the NBN project.

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Tags structural separationWayne BoydTelecom NZ

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