Gen-i: Big firms to get fibre by 2014

Chris Quin, Gen-i chief executive. Photo / Supplied

Telecom's information technology branch, Gen-i, says the number of its customers with a fibre internet connection is set to double by 2014 if New Zealand's second largest company splits in two next month.

Gen-i chief executive Chris Quin says fibre is due to become available to nearly all large companies in the next two and a half years if Telecom separates its retail arm from its network business, Chorus.

Telecom proposed the split as part of its bid for the Government's ultra-fast broadband contracts, which it won the bulk of in May.

If shareholders vote through the demerger, Chorus will become a separate public company on November 30 and lay thousands of kilometres of fibre internet cables in 24 towns and cities around the country. The project's completion date is 2019.

Following the split with Chorus, Gen-i will stay within the new Telecom business and continue to sell phone, internet, mobile and IT products to businesses.

Market chatter has Quin as a prime candidate for Telecom CEO when Paul Reynolds steps down next year. But Quin wouldn't comment on his employment intentions.

He said Gen-i was focused on preparing for a future where fibre connections became increasingly popular.

"Information we have indicates over 80 per cent of businesses have said they'll take fibre when it becomes available. We think the likely outcome of that is probably by 2014, half our [customers] will be on fibre - that's massively up from where it is today," Quin said. About a quarter of Gen-i's customers were directly hooked up to a fibre line, he said.

Shareholders vote on the demerger later this month. Bondholders have already given their approval.