KEY POINTS:
InternetNZ has welcomed Telecom's proposed operational split, but says the Government's approach has been too narrow.
But the internet Society of NZ, which manages the ".nz" domain name, said the path set out by the Ministry of Economic Development (MED) was generally a good one.
Telecom faces structural separation and the MED has produced a paper outlining how the changes might be achieved. But Telecom has offered an alternative, which could involve selling its fixed line phone network.
"Separation is the only way to promote a more competitive market in telecommunications in the long run. It has to be done once and done right," internetNZ deputy executive director Jordan Carter said.
InternetNZ said the ministry had taken a narrow approach to the services included in the separation requirements, how new services might be covered, and the development of Telecom's new network.
The society said there was a need for transparency and industry consultation about new network developments.
However, it was encouraged by the ministry's focus on inputs rather than outcomes, and the proposed division of assets.
"InternetNZ believes the Telecom proposal is somewhat light on detail, but we believe a solution between Telecom and the Government that respects the need for a strong and robust separation and delivery of equivalence is the best possible outcome for the telecommunications market," Mr Jordan said.
On Friday, Telecom warned the country needed a $1.5 billion investment if the Government was to meet its broadband target of 90 per cent of New Zealanders to receive 5Mbps broadband by 2010.
- NZPA
