Analysts say Telecom's latest quarterly result shows just how dependent the company is on the profits of network arm Chorus, and how vulnerable it would be to competing fibre access networks built as a result of the ultrafast broadband plan.
JBWere Goldman Sachs analyst Tristan Joll says Chorus is contributing a significant part of Telecom's earnings.
"Therefore, if there is something out there that exposes those earnings to competition, it creates a challenge and an imperative for them to try and defend it."
"Reynolds says discussions are taking place through the Telecommunications Industry Group, of which Vodafone, Kordia and Vector are also members, and one-on-one."
- Computerworld > Telecom broadens ultrafast broadband talks (view on Google Sidewiki)