structural separation Archives


That was the title of the two-hour TV talk show at ITN that I participated in yesterday. One does not expect new knowledge to emerge from a talk show, but this one was an exception. Illuminating information was disclosed by the Additional General Manager of the Ceylon Electricity Board in response to some statements I made. The disclosures can be seen in the Daily FT and Ravaya in a few days. Here below is my conclusion.
The New Zealand incumbent telco has separated itself into infrastructure and access companies, according to Telecom TV. This week it was announced that the incumbent telco will demerge so that Chorus, the firm’s fixed-line infrastructure arm, would be able to participate as an independent entity in the upcoming award of government contracts for the building of a national broadband network. It’s believed that this is the first time that an incumbent has undertaken complete separation. The new structure should mean that New Zealand avoids the ‘incumbent problem’ Australia suffered when full-scale war broke out between Telstra and the government around the role of the still vertically-integrated incumbent in the development of that country’s NBN. Shareholder approval for the complete services/infrastructure split in New Zealand was gained this week.