Telecom

Telecom's information technology arm Gen-i says it will make strong gains in a fibre-optic future, despite the dark clouds looming over the rest of the telco industry.

Telecom has admitted a software error has caused overcounting of broadband usage since November, affecting 35,000 customers who will now be provided with compensation.

Telecom has problems counting and could be overcharging thousands of customers' broadband accounts, according to detailed research by two customers.

Sky Television has signed a three-year deal with Telecom to resell all of Sky's television services.

Telecom faces a one to two notch credit rating downgrade from Standard & Poor's when it separates the network arm from the rest of its business.

The Commerce Commission says it is to issue proceedings alleging a failure by Telecom to provide a service to other companies caused serious harm to competition in telecommunications markets and reduced the financial feasibility of unbundling local exchanges.

Telecom managing director Paul Reynolds has no plans to leave the company or New Zealand despite this week pulling off one of the most profound changes of any global telecommunications companies.

What a difference a year has made for Telecom. This time last year, the Otago Daily Times reported the company's share price had plunged to a new low of $1.90 as uncertainty about the future structure of the once blue chip company set in.

Telecom New Zealand will split into two companies by the end of 2011, after the announcement yesterday its network arm Chorus will build nearly three-quarters of the Government's ultra-fast broadband network.

Shares in Telecom surged after an announcement that the company's network arm Chorus would build nearly 70 percent of the Government's ultra fast broadband initiative.