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Chorus demerges from Telecom NZ
01 December 2011
World first as New Zealand infrastructure provider Chorus becomes standalone company after Telecom NZ splits
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Chorus
Telecom NZ
New Zealand
structural separation
Telecom New Zealand has officially demerged Chorus, its fixed-line access infrastructure unit. Chorus will now operate as a stand-alone company and will now also be able to participate in the government’s ultra-fast broadband initiative.
This is believed to be the first time an incumbent operator has completely split its infrastructure operations and its service operations into separate companies.
Paul Reynolds, CEO of Telecom NZ, said: “The demerger of Chorus has been an enormous undertaking, and to complete it in such a short timeframe is testament to the phenomenal work of hundreds of people across both Telecom and Chorus. We can now look forward to two fresh and dynamic companies each having their role to play in the delivery of world class telecommunications throughout New Zealand.”
The NZ government was unwilling to offer infrastructure contracts to operators which would also offer services over the fast-broadband network, giving Telecom NZ the incentive to make Chorus a separate company. Telecom NZ holds on to its mobile operation and infrastructure and its international wholesale network.
In another development, Telecom NZ has named Mark Verbiest as its new chairman and a board member. The other new board members include Charles Sitch, Justine Smyth, Maury Leyland and Paul Berriman.
Murray Horn, Kevin Roberts and Reynolds will remain on the Telecom NZ board. Wayne Boyd and Ron Spithill have resigned from Telecom’s board. Sue Sheldon has also stepped down from the Telecom board and will be serving as chairman of Chorus. Reynolds has indicated that he will leave Telecom NZ in mid 2012. GTB
Further reading from Global Telecoms Business:
Telecom NZ shareholders OK split 27 Oct 2011
Paul Reynolds of Telecom NZ: first to split services from ... 26 Sep 2011
Telecom NZ to split services from network 01 Sep 2011
Foreigners 'can buy Telecom NZ's retail arm' 17 Jun 2011