Change to Telecom's 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.


The variation relates to the requirement on Telecom to implement logical separation of shared information systems containing customer confidential information by 31 December 2009. The variation also corrects a number of small errors.


The variation was requested by Telecom because it had established that it is not able to support the level of IT system business process change, system change solutions and integration testing required to concurrently deliver six major Undertakings milestones by 31 December 2009.


Six public submissions were received. Four submissions generally support Telecom's proposed variation with some reservations. Two submissions opposed approval of the variation.


The approved variation to the Undertakings sets a new date of 30 September 2010 for implementation of logical separation of shared information systems containing customer confidential information.


The approved variation also exempts a small number of aging PSTN information systems that contain technical information about the PSTN, from the requirement for logical separation.


The approved variation includes a requirement that Telecom provide to the Independent Oversight Group and the Commerce Commission a confidential progress report on key Undertakings-related work programme items by status and risk. The report will improve monitoring of key Undertakings-related work programme items where there is a risk of slippage.


Mr Joyce says he has informed Telecom of his decision.