Cunliffe rejects Telecom separation plan

DC may be facing the pressure in health, but I am very pleased to see he is still makin good calls in the Comms/IT area.

He has not accepted Telecom's proposed separation plan. The proposed plan was a lot better than the draft plan, but still had aspects which would have left incentives in place which would increase the chance of failure.

, whose submission was to not accept the plan, is relieved and happy:

InternetNZ Executive Director Keith Davidson says it is very good to see Government has recognised the issues, and is committed to ensuring a robust operational separation plan that correctly incents the relevant divisions within . “Ideally the wholesale manager should have little or no group incentive and InternetNZ is pleased to see that a limit will be put in place.”

The changes needed are not huge, but of great significance potentially.  Telecom today is a very different beast to a few years ago and are generally working well towards a structure where there will be greater competition and investment.  The deserves credit for not rushing the final plan by sacrificing quality for speed.

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