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David Cunliffe

26 October, 2007

Consultation on Telecom's Draft Separation Plan

Communications Minister David Cunliffe has today called for public submissions on Telecom's Draft Separation Plan.

"Telecom has prepared a Draft Separation Plan, including binding undertakings, as required by the Telecommunications Act 2001. This milestone is a key step in the process of operationally separating Telecom.

"This critical initiative will help to reshape how New Zealand's telecommunications markets operate and perform for many years to come," Mr Cunliffe said.

"Without prejudice to stakeholders' feedback, I welcome the sea change in Telecom's approach to the separation process and their decision to adopt a constructive and progressive stance in recent months. I also wish to acknowledge the leadership shown by Telecom's new CEO, Dr Paul Reynolds, and I look forward to working with him to complete this process in good time.

"Telecom's Separation Plan must meet all the requirements of the Telecommunications Act 2001 and my Determination of further requirements which was released on Wednesday 26 September 2007.

"Accordingly, I welcome feedback from the industry and the wider public on Telecom's Draft Separation Plan. I am particularly interested to know whether submitters consider that any aspect of the Draft Separation Plan could be modified to better meet the requirements of the Act and my Determination."

"I am determined that we get this right, so that Telecom's separation is effective, robust and enduring," Mr Cunliffe said.

Mr Cunliffe noted that some aspects of the next generation network migration plans contained in the Draft Separation Plan remained a work-in-progress. "I look forward to working with Telecom and the industry to ensure that the final shape of Telecom's Separation Plan produces the best overall outcome for New Zealand."

Submissions must be received by the Ministry of Economic Development no later than 5:00 pm on Friday, 23 November 2007.



Next Steps

After the completion of the public consultation phase, Telecom is required to prepare an Amended Separation Plan in consultation with the Minister within 15 working days. Telecom is also required to prepare a summary of how (if at all) the Plan has been amended as a result of public comments.

The Minister is then required to decide whether to approve or decline to approve the Amended Plan. If the Minister decides not to approve the Amended Plan, he can then take steps (outlined in the Telecommunications Act 2001) to have the Plan finalised to his satisfaction.

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