Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order, which comes into force on 30 August 2011, approves an asset allocation plan prepared by Telecom Corporation of New Zealand Limited (Telecom) in accordance with the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (the Act).

Under that Act, the asset allocation plan must be prepared by Telecom as part of the preparation for the structural separation of Telecom and is required to set out how the assets and liabilities of Telecom are intended to be allocated between Telecom and Chorus (the other company involved in the separation), how those assets will be used to provide telecommunications services to the market after structural separation, and key terms of intended material sharing arrangements between the 2 companies.

The Governor-General's approval of the asset allocation plan, on the recommendation of the Minister for Communications and Information Technology, is a precondition for amendments to the Telecommunications Act 2001 concerning structural separation to come into force and the structural separation of Telecom to proceed.

The Act requires Telecom to make an overview of the asset allocation plan publicly available on its Internet site.