How Telecom intends to split itself in two

How Telecom intends to split itself in two

Paul Reynolds confirmed as chief executive of New Telecom

Details of how Telecom assets will be divvied up in the proposed structural separation have been released in documents on the Ministry of Economic Development website today.

In order to participate in the Ultra Fast Broadband network, Telecom has undertaken to demerge is network division Chorus and create two separate companies – nominally called New Chorus and New Telecom in the telco’s media statement announcing the documents' release. Telecom's split is subject to shareholder approval.

The documents show which assets and liabilities will be transferred to New Chorus during the merger, the commercial arrangements between New Telecom and New Chorus, and the Deeds of Open Access.

The Asset Allocation Plan (AAP) shows that while there will be no joint ownership of assets, certain assets will be used by both New Chorus and New Telecom. “Those arrangements are designed as commercial arm’s length agreements and they will be subject to oversight by the Commerce Commission,” the statement reads. Read the rest of the article at Computerworld.

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