Thursday, September 03, 2009

Feedback on Telecom proposal

The NZ Herald reports "The Government wants feedback on Telecom's request for a variation on its planned operational separation.

Telecom announced a three-way split of its operations as part of the previous Labour Government's 2006 decision to reregulate aspects of the industry.

Communications and Information Technology Minister Steven Joyce said Telecom recently requested the government consider a variation to the proposed plan"

Here's my feedback:

1. Let Telecom do as it wishes. The Government does not own Telecom, Telecom's shareholders do.

2. Advise Telecom it does not need government permission for any changes to its own corporate structure, and that the Telecommunications Act 2001 will be amended to remove any powers of the government to direct the Telecom as to its property rights.

The NZX50 should take a rather significant leap at that point. The mooching participants in the telecommunications industry might have to think again before expanding their "businesses" using other people's property under duress.

No comments: