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Topic # 75596 20-Jan-2011 11:32 Send private message

Just received:


UPDATE ON TIMELINE FOR STRUCTURAL SEPARATION
19 January 2011

Telecom has today advised that it will announce a revised timeframe for the structural separation of its business, upon entering into a contractual arrangement with Crown Fibre Holdings for the Ultra-Fast Broadband (UFB) project.

“Based on initial timeframes for the UFB project, Telecom has previously indicated that it would aim to enact structural separation by the end of June 2011,” said Paul Reynolds, Telecom CEO. 

“However, that would have required Telecom to have reached a contractual arrangement with Crown Fibre Holdings last year for this timeframe to be achieved. 

“In December last year, Telecom was confirmed as a negotiating partner for the UFB rollout and is now in detailed negotiations with Crown Fibre Holdings. However, the final timeframe for demerger will be determined when Telecom is able to reach an agreement.”

The company has proposed structural separation – splitting into two separate companies – as part of its proposed package for involvement in UFB that encompasses co-investment, partnership and regulatory and legislative reform. 

Dr Reynolds noted that enacting structural separation is a complex and detailed undertaking, requiring far-reaching changes to Telecom’s businesses. 

“There are a wide range of commercial, regulatory, legislative and disclosure considerations involved in enacting the demerger of Telecom. It will also require Telecom’s shareholders to vote in favour of the proposal.” 




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  Reply # 429263 20-Jan-2011 17:23 Send private message

Should be interesting..

Consider the 2010 financial results (which are available from here http://www.telecom.co.nz/accountingseparation)

Chorus: $571m profit from $1,059m revenue, profit is 54% of revenue
Telecom Wholesale: $10m loss from $925m revenue, profit is -1% of revenue
Telecom Retail: $143m profit from $3,301m revenue, profit is 4% of revenue

Chorus is basically the best part of the business, going to have to offer a sweet deal to shareholders.

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  Reply # 429267 20-Jan-2011 17:33 Send private message

Ragnor: Should be interesting..

Consider the 2010 financial results (which are available from here http://www.telecom.co.nz/accountingseparation)

Chorus: $571m profit from $1,059m revenue, profit is 54% of revenue
Telecom Wholesale: $10m loss from $925m revenue, profit is -1% of revenue
Telecom Retail: $143m profit from $3,301m revenue, profit is 4% of revenue

Chorus is basically the best part of the business, going to have to offer a sweet deal to shareholders.


When the commerce commission dictates the prices each business unit can charge each other you are going to get some funny reuslts.

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  Reply # 430393 24-Jan-2011 00:08 Send private message

So if a new Telecom spinoff is leading any fibre consortium, we have to wait until shareholders approve it before build can start? They should have pushed the demerger through already if they were serious. Maybe Telecom should focus on building infrastructure that will get them a chance to sell/lease to the fibre co later on, or perhaps exchange for shares in the consortium after the demerger is through.




Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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  Reply # 430396 24-Jan-2011 00:17 Send private message

Yep Chorus/whatever must be structurally separated to be eligible to be a LFC/RFC (local/regional fibre co) structural separation is obviously not possible without shareholders approval.

So yes it's going to be VERY interesting imo.

Australia are taking a completely different approach, they have a much larger budget (near 40 billion) so their NBN co is just straight up spending $11 billion AUD to buy Telstra's access assets ie: pits, ducts, copper, fibre etc.



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