The Government is defending its process for picking Telecom to set up the majority of the ultra fast broadband (UFB) network.

Telecom's split into a network company and service wholesaler and retailer now only hangs on a law change next month and a shareholder vote later this year, chief executive Paul Reynolds has told staff.

Telecom has withdrawn its international voice business from sale after failing to attract a suitable price.

Consumers already under stress from rising prices are about to face another double whammy from two of our biggest companies.