Research and Markets: New Zealand - Telecom New Zealand's Proposal for Structural Separation

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/00a40a/new_zealand_tele) has announced the addition of the "New Zealand - Telecom New Zealand's Proposal for Structural Separation" report to their offering.

As foreshadowed a month ago Telecom has finally put forward its proposal to government-owned Crown Fibre Holdings regarding the conditions under which it will be prepared to structurally separate. Obviously any such deal would still require (75%) shareholder approval.

While there are very few details, in essence the proposal is to structurally separate the company, through a demerger into two companies, which would create Chorus2 as a new and entirely standalone company.

Furthermore, it is proposed to integrate the Ultra-fast Broadband initiative with the Rural Broadband Initiative. Integrating these two initiatives would allow for the extension of the reach of Ultra-fast Broadband into rural areas, well beyond the 75% coverage area. The economies of scale that can be achieved through this proposal and through utilising existing assets will mean rural New Zealand can more quickly obtain the benefit that fibre will bring. BuddeComm supports this suggestion as, in the words of Telecom, the rural sector has both the need and the applications available to be able to take advantage of the benefits of fibre-based telecommunications.

The key to a successful path forward from here is a careful balancing of interests between those of Telecom and the rest of the industry. The participation of Telecom in the UFB is very welcome but, at the same time, it will add to the complexity of the process.

This Investors Research Note will also include comments on the partial sale of Telecoms Australian subsidiary AAPT.

Key Topics Covered:

1. Synopsis

2. How to move forward from here? 2.1 Complexity increases in New Zealand 2.2 Key changes to the industry 2.3 Telecoms request for variations 2.4 Problematic transition period 2.5 Commerce Commission should lead the negotiations

3. Telecom has sort of sold AAPT

4. Brief background information

4.1 Company overview Telecom Corporation New Zealand 4.2 Ultra-Fast Broadband Network

For more information visit http://www.researchandmarkets.com/research/00a40a/new_zealand_tele

CONTACT:

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

KEYWORDS:   Australia/Oceania  New Zealand

INDUSTRY KEYWORDS:   Technology  Telecommunications

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