Telecom asks for more leeway in separation deal

Telecom has asked the Government for leeway in its separation undertakings for the first time since they came into effect last year.

In a letter to Communications and Technology Minister Steven Joyce, Telecom's chief executive, Paul Reynolds, said the company had met more than 100 milestones but had identified a better approach to delivering on those relating to its wholesale arm.

He suggested a change to the order in which Telecom Wholesale is required to upgrade its systems to provide equal access to wholesale customers buying its phone and broadband services.

Reynolds said that in Britain, where the incumbent telco British Telecom has undergone a similar split, variations to the Government agreement were a "frequent and important part of the separation scheme, as I am sure they will become here".

"I do recognise that this is the first such request in the New Zealand context, and Telecom has accordingly gone to significant effort to consult with the industry and officials in preparation of it," said Reynolds.

A statement from the minister said the request for a change to the separation undertakings was not linked to the recent Government announcement of a high-speed broadband network.

Telecom shares closed yesterday up 9c at $2.54.