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Promising operational separation progress welcomed

Media Release - April 5, 2007 - InternetNZ President Colin Jackson today welcomed the government's release of a consultation document setting out the proposed shape of operational separation that will be applied to Telecom.

"On an initial reading, the proposed model will be a robust separation model
that should deal with Telecom's ability and incentive to discriminate
against third party access seekers," Mr Jackson said.

"Over the next week InternetNZ will carefully consider the document in
detail. If that study shows the need for further industry discussion, either
to clarify the detail or debate issues of concern to prospective access
seekers or to Telecom, InternetNZ will convene an industry workshop along
the lines of the January workshop held in Palmerston North, which provided
some input to government for the creation of the current discussion document.

"InternetNZ also notes that there is some logic in Telecom moving beyond the
proposed model by appointing seperate Chief Executives for the three
proposed divisions. This idea has been discussed in the media and has not
attracted negative attention. It could be a clear signal from Telecom's
board that they are serious about making operational separation work as well
as possible.

"Finally, I congratulate the government and the Ministry of Economic
Development on pulling together a complex piece of work like this at a
reasonable pace," Colin Jackson said.

InternetNZ will be making submissions in response to the discussion document
and will publish these at the time it lodges them with the Ministry.

For further information:

Colin Jackson, President
021 393 685,

Keith Davidson, Executive Director
021 377 587,

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