The structural separation of Telecom would be a major change for the telecommunications industry and the Government is seeking public feedback on what the regulatory impact would be, Communication and Information Minister Steven Joyce says.
Telecom recently announced it was considering structural separation of its network and retail business in the context of the Government's ultra-fast broadband (UFB) initiative.
Crown Fibre Holdings put Telecom on its shortlist of 14 parties for the UFB rollout.
Mr Joyce said the Government had released a discussion document on the regulation of a Telecom separation and was seeking industry and public feedback on the issues involved.
That includes the regulatory regime for copper services, Telecom's operational separation undertakings and the local service Telecommunications Service Obligations.
"To assist the Government in its consideration of any issues that might arise we are seeking input from the industry and interested parties at this stage of the policy development process," Mr Joyce said.
"Should Telecom decide to structurally separate, any changes to the regulatory regime the Government may adopt would be robust and well-informed and tested by the industry and key stakeholders."
Telecom said it was reviewing the discussion document.
Telecom chief executive Paul Reynolds said the UFB tender process had a long way to go, and finding a solution for UFB that achieved the Government's objectives while also being sustainable and economic was challenging.
"It will be complex and challenging to arrive at a solution that will receive the necessary support of Telecom's shareholders," Dr Reynolds said.
Submissions on the discussion document are open until October 15.
