Telecom has confirmed it proposes splitting into two companies so it can take part in the Government's $1.5 billion ultra-fast broadband project.
The separation is mandatory if the company is to win the chance to bring ultra-fast service to three quarters of New Zealand homes by 2019.
At present, Telecom cannot bid for the project because the rules forbid companies which are both network and retail operators from taking part.
Chief executive Paul Reynolds says the company can deliver the ultra-fast broadband network more quickly and efficiently than anyone else, and it's prepared to separate its network and retail businesses if its bid is successful.
Mr Reynolds says Telecom proposes splitting off its Chorus division as a new, stand-alone company called Chorus 2, subject to 75% approval by shareholders.
Investors could vote on splitting its network and retail operations by early in the second half of next year, the company says.
