19 Apr 2011

Binding offer for broadband network made by Telecom

6:11 am on 19 April 2011

Telecom has submitted a binding offer to the Government to build an ultra-fast broadband network to most of the country.

The company is bidding for 25 of the 33 centres, including the Auckland market.

If successful, Telecom aims to split in two by the end of the year, creating a stand alone listed network arm, Chorus.

While not outling any details, chief executive Paul Reynolds says he's cautiously confident the offer will be attractive to the Crown and its shareholders.

The Government is to invest $1.5 billion to help build the network, with successful network builders expected to inject another $6 billion.

Meanwhile, Telecom is to instigate another round of job losses, starting with a reduction in its executive team from 10 to eight. Head office services, technology platforms and products will also be cut.

Its shares rose 8.5 cents to $2.065 each on Monday.