Forcing the Telecom split

Regulatory lawyer Michael Wigley, whose clients include ihug, Callplus and Internet New Zealand, wants the Government to give itself more legislative power to force a separation of Telecom's wholesale and retail arms.

The Government's unbundling legislation, the Telecommunications Amendment Bill, prescribes accounting separation for the two parts of Telecom's business, but Wigley suggests the bill should include the more invasive option of operational separation.

"If New Zealand is anything like the international experience, the new regime, welcome though it is, won't work and we'll be held back yet another year or two," he says.

"Robust operational separation is probably the most important step to take and where most of the debate should take place. Government can set up a regime so that quick action can be taken." The deadline for submissions on the Bill is August 11.