Competitors get look at Telecom 'accounts'

Telecom has published accounts ordered by the Government as part of the company's operational separation undertakings, complete with a 323-page manual on how they should be interpreted.

The accounts attempt to break down Telecom's business from the perspective of regulators, rather than its own internal organisation, and are designed to help competitors shed light on the business.

They emphasise the significance of its access services business – predominantly Chorus – showing it accounted for $594 million of the company's $737m profit in the year to June.

It would cost $13.7 billion to replace its network from scratch, the accounts suggested.

Some contributions, such as Southern Cross dividends, are excluded from the accounts, and the company warned they could not be compared to its statutory accounts.

The Commerce Commission said it had not had time to ascertain whether assets had been properly allocated to Telecom's different business functions, so "limited reliance" should be placed on the accounts.

- © Fairfax NZ News