Telecom NZ Separation Plan

Telecom New Zealand, the incumbent telecommunications provider of New Zealand has been forced by the New Zealand Government to separate its retail and wholesale operations. Telecom owns the sole nation-wide IP backbone in NZ and the last mile ciruits in most areas.

Access by third parties to this infrastructure has been at 'wholesale rates' priced in many cases above the retail rates Telecom has been charging its customers. This has been viewed by the NZ Government as anti-competitive and as holding back the advancement of Telecommunications in New Zealand.

The Separation will force Telecom to provide a more competive platform to other service providers.

Notice of Requirements and Information Re Operational Separation Process

Reason For Operational Separation on Telecom

Operational separation has been required by Parliament, under the Telecommunications Act 2001:

1. To promote competition in telecommunications markets for the long-term benefits of end-users of telecommunication services in New Zealand
2. To require transparency, non-discrimination, and equivalence of supply in relation to certain telecommunications services
3. To facilitate efficient investment in telecommunications infrastructure and services.

Separation aims to increase the transparency of Telecom's business operations, and remove or limit discriminatory behaviours that adversely impact competition in downstream markets.

Timetable

31 March 2008 - "Separation Day", at which time, undertakings become legally enforceable. An IOG [Independent Oversight Group] is to be esablished and Telecom will have implemented stand-alone ANS unit and realigned wholesale services.

30 Jun 2008 - Remaining organisational implementation requirements completed by Telecom.

As soon as possible - Telecom migrates to self-consumption of LLU and UBA products and prices

December 2009 - Business-to-business gateways supporting equivalent business transactions to be completed by Telecom. All re-sale services meeting re-sale equivalence standard.

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