Settlement frees TVNZ telco unit

By RICHARD BRADDELL

Broadcast Communications is free to pursue telecommunications activities without restriction after parent TVNZ bought out a restraint-of-trade agreement with Clear Communications for $30.5 million.

The payment clears the way for BCL to compete on an even footing in the telecommunications market, and may also make the unit more attractive as a standalone company.

The Government on Tuesday received a report by consultancy Arthur Andersen on the feasibility of splitting BCL from TVNZ, but has asked for more information. A spokesman for Broadcasting Minister Marian Hobbs said further information was expected next month.

TVNZ spokesman Glen Sowry said BCL was now free to pursue ambitions of providing data transmission services, either to other telecommunications companies or directly to customers.

The $30.5 million payment, vaguely alluded to in TVNZ's first-half report tabled in Parliament this week, ends cross restraints entered into in 1993 after TVNZ became a shareholder in Clear.