Telecom New Zealand's shareholders green light its breakup plan
The majority of Telecom New Zealand's shareholders (99.8 percent) have approved the service provider's structural separation plan.
Under the terms of the agreement it struck with the government, the service provider will separate its wholesale wireline access infrastructure business, Chorus, which will have a major role in the New Zealand government's Ultra-fast Broadband (UFB) initiative.
"The shareholder vote marks a critical step in the creation of an entirely new structure for the telecommunications industry in New Zealand," said Paul Reynolds, Telecom New Zealand's CEO. "We are very pleased to have received our shareholders' consent for this significant step, and Telecom's focus is now on the swift enactment of the split, along with ensuring both companies are well positioned as New Zealand moves into the fibre future."
TNZ had to agree to separate its retail and wholesale units so it could take part in the UFB initiative that's been spearheaded by Crown Fibre Holdings (CFH). Previously the service provider won contracts to build out network and services in 24 urban areas, including Auckland and Wellington.
When the demerger is complete at the end of November, Chorus will operate a wholesale "open access" network providing services to any service provider, while Telecom will continue to deliver retail wireless and wireline and IT services to businesses and consumer customers.
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