Steven Joyce

The government is seeking industry and public feedback on regulatory issues that might arise if Telecom was to structurally separate.

"Telecom New Zealand has recently announced that it is considering structural separation of its network and retail businesses in the context of the Government's Ultra-Fast Broadband (UFB) Initiative," says the Minister for Communications and Information Technology, Steven Joyce.

Crown Fibre Holdings recently announced Telecom as one of the 14 short listed parties for the UFB roll out.

Mr Joyce says structural separation would be a major change to the telecommunications industry and would impact on key elements of the regulatory regime governing the industry.

He says it makes sense for the government to consider the implications of such a move on the sector.

"To assist the government in its consideration of any issues that might arise, we are seeking input from the industry and interested parties at this stage of the policy development process.

"Should Telecom decide to structurally separate, any changes to the regulatory regime the government may adopt would be robust and well-informed and tested by the industry and key stakeholders."

Structural separation would have implications on:

the regulatory regime for copper services;

Telecom's operational separation undertakings; and

the local service Telecommunications Service Obligations (TSO)