A breakup of Telecom could be announced in the next three months, sources say, with shareholders likely to be offered stock in spun-out infrastructure unit Chorus.
The scheme would represent a big climbdown for Telecom and its chief executive, Paul Reynolds, after fighting to find a way to take part in the Government's $1.5 billion fibre optic infrastructure plan without splitting.
Fonterra has gone live with the first of what it calls its direct telecommunications infrastructure services through Telecom's IT services unit Gen-i.
Gen-i will provide wide area network (WAN) infrastructure and management services for Fonterra’s New Zealand and Australian sites, and desk telephony for the company's 47 global sites. Local area network (LAN) services for the New Zealand and Australian sites will shift to Gen-i later this year.
AAPT, the troubled Australian arm of Telecom NZ, is set to turn the corner this month as it moves into cash flow-positive territory for the first time.
Chief executive Paul Broad said operating costs had come down and the culture of the company was changing to reflect its true position in the Australian market.