The Telecommunications Users Association (TUANZ) has cautiously acknowledged the case for Telecom to be relieved of some of the more onerous requirements of its operational separation undertakings, but with caveats.

"TUANZ accepts at face value the argument that requiring Telecom to meet the current deadline to migrate customers into a new wholesale broadband service could expose end users to some risk of service failure," TUANZ Chief Executive Ernie Newman said. "However, we note that Telecom entered the Undertakings willingly in 2006, at which time the deadline was acceptable. If it is given relief, we would not want this to be taken as a signal that the government will grant variations any time there is slippage in a timetable.

"We also see little merit in forcing Telecom to develop new operating systems designed in an earlier environment, when the move to ultra fast broadband will potentially make this investment redundant. If cost is driven into Telecom's operations wastefully, it is their customers who will pay.

"In respect of Telecom's undertaking to migrate 17,000 customers onto a new VoIP (Voice over Internet Protocol) service by December 2010, we see its failure to deliver as being within Telecom itself rather than an industry-wide issue. We can live with some modest extension of time, but do not think this Undertaking is any less valid than when established in 2006.

"TUANZ notes that each time Telecom requests variations from its operational separation undertakings, the pressure for it to declare its hand on voluntary structural separation increases. If the company wants support for such variations in the future, it should first be a great deal clearer about its intentions in this direction. TUANZ would strongly support a move to voluntary structural separation as a pragmatic move to position the company for the future, but on condition that this be a voluntary move by the company and not one imposed by the government."