Telecom's stock price hit an all-time low yesterday after it told the market that its share of the Government's new rural broadband initiative would cost it $168 million over three years.

Plans for a new high-speed link are expected to lead to lower internet prices and unlimited downloads for home connections.

A proposed optic fibre cable linking NZ, Australia and the USA would unleash billions of dollars of economic potential by connecting NZ businesses to global markets by 2013.

The chairman of the Shareholders Association has defended Telecom executives' high salaries, saying the company operates in a global market.

Former Telecom head Theresa Gattung has attacked the company for paying its executives much bigger salaries than when she was in charge.

Telecom is giving out rival 2degrees' services to key hospital staff on XT in case the unstable network goes down again.