Change to Telecoms operation separation undertakings

Communications and Information Technology Minister Steven Joyce has approved a variation to Telecom's operational separation undertakings, which came into force in March 2008.

He says the variation was sought by Telecom in March of this year to facilitate more efficient delivery of services to wholesale customers, and to reduce system build and integration costs.

"I have approved the variation which I believe better meets the purposes of the Telecommunications Act than do the existing undertakings.

"Variations to the separation undertakings were envisaged from the outset in order to accommodate changing circumstances.

"While implementation of the varied separation undertakings will delay full equivalence related milestones for delivery of unbundled lines and backhaul by six to 12 months, the variation is expected to significantly improve the delivery of important wholesale services to other telecommunications service providers ahead of the previous timetable.

"I note that the three competitors who made submissions on Telecom's variation at the consultation stage supported the change.

"I have informed Telecom of my decision and have confirmed to them my expectation that an offer it made to Vodafone in respect of risk mitigation plans and regular progress briefings, be provided to other service providers who might be interested in taking up such an offer."