KEY POINTS:
Telecom has named the in-house watchdogs who will ensure it treats wholesale customers the same way it treats its divisions under its new separation agreement.
Last month, Telecom appointed retired High Court judge Barry Patterson independent chairman of the Independent Oversight Group (IOG).
And yesterday, chairman Wayne Boyd named former Electricity Corporation of New Zealand chief executive David Frow and Hamilton accountant Jerry Rickman, establishing what Telecom says is an independent majority for the committee.
It also named its own IOG members - longtime Telecom New Zealand board member Ron Spithill and Anthony Briscoe, who is head of Telecom's international division in the Southern Cross transpacific cable.
The appointments have been given a tentative thumbs up.
But some in the telco business - such as the Telecommunications Users Association of New Zealand - are surprised Telecom has appointed "lawyers, accountants and other honchos".
"We thought it would be more of a hands-on, sleeves-rolled-up group," said Ernie Newman, TUANZ chief executive.
Martin Wylie, chief executive of Telecom competitor CallPlus, said of the group: "It looks unlikely to take on a proactive policeman role. I would have had a more proactive group, but Telecom are looking for some fairly tame individuals."
Vodafone said that based on experience in Britain - where an internal watchdog had a key role in the oversight of British Telecom - the IOG could play a significant role.
The appointment is a big step into the new era for Telecom under the separated structure which began on April 1.
Where competitors previously claimed that Telecom gave better deals to its own operations, the IOG ispromoted as ensuring that wholesale customers and Telecom divisions are treated the same.
But the new body will rely onfunding and support from Telecom and the IOG is yet to spell out thesystems that ensure customers and staff will be able to access them.
Chairman Patterson has declined to be interviewed until after the group has officially met.
TUANZ's Newman said that the make-up was different from what his group expected.
"We still don't know yet the degree that their budgets will be bound by Telecom and the access that wholesale customers like internet service providers and competition will have."
