Telecom Corp. Selected for Prioritized Talks on New Zealand Broadband Plan

Telecom Corp. has been selected for prioritized negotiations by the New Zealand government to deliver the ultra-fast broadband services program in 25 regions, which may lead to a demerger of the company.

The regions cover the entire country apart from seven areas already assigned to rivals and an eighth zone where there’s another prioritized bidder, Crown Fibre Holdings Ltd. the agency overseeing the process, said in an e-mailed statement. The government is also in prioritized talks with Enable Networks for services in the South Island city of Christchurch and with the Flute joint venture for broadband in Dunedin. The government is seeking partners for a NZ$1.5 billion ($1.1 billion) nationwide fiber-optic network that will deliver fast Internet to homes and businesses. Telecom, the nation’s biggest telephone company, has said it will demerge to create a separate network company to satisfy government requirements.