Telecom variation approved

A third variation of Telecom's operational separation undertakings has been approved, Communications and Information Technology Minister Steven Joyce said today.

Telecom requested the variation so it could support ultra-fast broadband related services and processes, which the Government is working on.

The separation undertakings, which set out the requirements for splitting Telecom into three separate business units, came into effect in March 2008.

"The approved third variation will provide Telecom with time to design and incorporate capability to support fibre-based access services that will in future be available via the fibre infrastructure being funded through the Government's ultra-fast broadband initiative, irrespective of who secures that funding," Joyce said.

"Where current access seekers have invested in systems to enable them to inferface with new operational support systems to be provided by Telecom, there is a requirement under this variation for Telecom to compensate them for any unnecessary capital expenditure."

Joyce said Telecom also recently proposed a fourth set of variations which include changes to operational support systems, requirements to address what it considers are inconsistencies with the Government's ultra-fast broadband initiative.

"I will shortly be initiating a process to consider Telecom's fourth request," Joyce said.

"I will expedite Telecom's request through the usual process with an open mind."

- NZPA