Telecom NZ, Enable Networks secure remainder of UFB contracts; Telecom must spin off network arm to proceed

Crown Fibre Holdings (CFH), the government agency charged with managing New Zealand’s Ultra Fast Broadband (UFB) network and seeks to extend high speed fiber-based Internet to at least 75% of the country’s population through a new fibre-optic network, has confirmed that it has allocated the remainder of the country’s geographical regions to Telecom New Zealand and Enable Networks. As part of the agreement Telecom New Zealand has agreed to structurally separate its infrastructure business unit, Chorus, from the rest of the company. Going forward, Chorus will operate as a nationwide fixed line access network operator, offering services on an ‘open access’ basis, whilst ‘Telecom’ will function as a retail-focused telecoms business, comprising fixed, mobile and ICT businesses. Pending certain conditions, including stakeholder approvals and legislative change, Telecom has confirmed that it aims to demerge Chorus by the end of the calendar year.