Telecom has speculated that investors' interests may be best served by a possible demerger of its retail and network arms, in order to participate in the Government's ultra-fast broadband plans.
But the phone company says that a reduction in regulation on its copper network will be essential to reflect the shift to fibre, and that not taking part in the Government's initiative is still an option.
Speaking at Telecom's investor day in Sydney, chief executive Paul Reynolds downplayed selling part or all of network arm Chorus to the Crown, which Prime Minister John Key has ruled out.
While saying that he has no idea how it will pan out, Dr Reynolds says a demerger would allow investors to have exposure to both sides of its operations.
He says reining in costs, including centralising the operations of business units, remain a key focus as Telecom seeks to return to earnings growth in 2012.
Dr Reynolds told his audience that retaining customers, cutting costs and seeking regulatory relief on thecopper-based network are dominating his thoughts.
The company's share price slumped to its lowest ever - $1.85 - on Tuesday.
