Govt approves Telecom's proposed asset split

The Government has approved Telecom’s plan to split its assets after structural separation -- the first major step in Telecom's proposed demerger process.

Telecom has proposed to structurally separate in order to be able to participate in the Government’s $1.35 billion ultra-fast broadband initiative.

Under structural separation, the new Chorus will be the main provider of fixed-line telecommunications infrastructure and will not be able to offer retail services.

A statement from Communications and Information Technology Minister Steven Joyce's office said the Commerce Commission would closely monitor and enforce the sharing arrangements outlined in the plan.

That involved ensuring arrangements were on arm's length terms, unlikely to harm competition, and would protect confidential customer and commercial information.

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