30 Sep 2010

Telecom split must make sense first - chairman

12:53 pm on 30 September 2010

Telecom is reassuring investors that the business case to split its retail and network arms to participate in the ultra-fast broadband, will have to make sense before it proceeds.

At the company's annual meeting in Christchurch on Thursday, chairman Wayne Boyd told shareholders that Telecom has put a compelling case before the Government and a split could happen by July next year.

Any split will require investor support and Mr Boyd said there was no question of giving it away at shareholders expense.

Telecom is not a initial preferred bidder to rollout ultra fast broadband in three regions, but Mr Boyd won't say whether the company is in talks with lines companies, or Crown Fibre Holdings, about playing some role in rolling out a fibre network.

Shares in Telecom fell 1 cent to $2.07 on Thursday morning.