Telecom NZ considering structural separation

Telecom NZ (ASX:TEL) is fully investigating structural separation, a condition of participation in the NZ government’s Ultra-Fast Broadband initiative.

“The government’s UFB initiative will fundamentally reshape the structure of the entire telecommunications industry in New Zealand, and Telecom is therefore undertaking a thorough assessment of the merits of structural separation,” CEO Paul Reynolds said.

But he added that the company will need a thorough understanding of the regulatory environment the UFB would be operating under.

Telecom will have to consult with the government before it can make a decision, he said.