Telecom accounting obligations proposed under split

Telecom will have to provide financial information about its separated business units under a draft plan issued today by the Commerce Commission.

The Government has pushed for the separation of Telecom into wholesale, retail and network divisions, to boost competition and investment in broadband infrastructure.

The operational split, approved in March, would ensure better and cheaper internet and phone services for most consumers, industry groups believe.

Under the commission's accounting separation proposal, Telecom would be required to release financial information about its business units including retail, wholesale, Chorus (fixed network access) and other fixed network services.

"This information, which will be publicly available, will provide improved transparency, identify any cross-subsidies and support non-discrimination," said Telecommunications Commissioner Ross Patterson.

"In doing so, it will complement the non-financial reporting required by the operational separation undertakings."

Under the draft paper, July 2008 to June 2009 will be a transitional year with the first financial information released in the second half of 2009. Full reporting under accounting separation will apply for the year July 2009 to June 2010.

Submissions are due by July 18, with a final version of the paper expected to be released in August.

http://www.nbr.co.nz/article/telecom-accounting-obligations-proposed-under-split-32404

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Telecom accounting obligations proposed under split