Telecom is starting to lay fibre for ultra fast broadband in Auckland, suggesting it's confident of gaining shareholder approval to split into two separate companies.
Shareholders are still waiting for the company to release information about its demerger plans, so they can vote on the proposal.
The Government requires Telecom to separate into two listed companies, in order to participate in the ultra fast broadband rollout.
Telecom's network arm Chorus on Wednesday started to lay cable in Auckland, starting in Albany.
Communications Minister Steven Joyce says businesses will be among the first to use the new ultra fast broadband.
He says internet retailers will be paying half the price for broadband, meaning end users will pay the same or less for a faster internet service.
Ultra fast broadband will be available to 50,000 homes and businesses throughout New Zealand by July next year.
In the first year, fibre will be linked to Auckland, Wellington, Rotorua, Napier-Hastings, Palmerston North, Masterton, Dunedin, Blenheim and Ashburton.
Chorus is still working on plans to lay fibre in Feilding, Gisborne, Greymouth, Invercargill, Kapiti, Levin, Nelson, Oamaru, Pukekohe, Queenstown, Timaru, Waiheke Island, Waiuku and Whakatane.