Sunday, April 17, 2011

Telecom New Zealand Submits Ultra Fast Broadband Proposal to Crown Fibre

Following months of detailed negotiations, Telecom New Zealand submitted its offer to Crown Fibre Holdings (CFH) to participate in the nation's new, open-access, fibre-to-the-home network. Under the proposal, Telecom would structurally separate its access business and physical infrastructure.

"Our proposal meets all of the key components of the UFB vision. It would see the creation of a completely new listed company, Chorus, to deliver an open-access, national, fibre-to-the-home network. Chorus' fibre services would reach 75% of New Zealand within ten years and we believe it satisfies all of CFH's competitive pricing requirements," said Paul Reynolds, Telecom CEO.

"Of course, we are engaged in an intensely competitive process with other bidders and the Crown must decide, so we retain a degree of caution. However, the Telecom board is satisfied that we have submitted the best possible bid terms on behalf of our shareholders."