Change to Telecom's operational separation undertakings

Communications and Information Technology Minister Steven Joyce has reached an agreement with Telecom New Zealand to vary its operational separation undertakings, which have been in force since 2008.

On 25 March 2011, Telecom sought a fifth variation to the undertakings, in the context of the Rural Broadband Initiative (“RBI”). The variation was designed to clarify that certain subsidised services Telecom would supply under the RBI, if it were chosen as the successful bidder, would not be a breach of the non-discrimination rules in the undertakings. A contract with Telecom to provide RBI services has now been signed.

“Having considered submissions made on the proposal as well as advice from officials at the Ministry of Economic Development, I decided that, while I was comfortable with the intent of the proposed variation, it needed to be more clearly drafted to provide certainty for all stakeholders,” says Mr Joyce.

“I therefore made a counterproposal to Telecom, with a text addressing my concerns. Telecom has accepted my counterproposal.

“This variation will help ensure the success of the RBI and will benefit rural users.”

Further details on the variation, together with submissions, are available at www.med.govt.nz/operational-separation/variation5