Change Creates Uncertainty

The Chairman of NZ Telecom, whom I have never seen interviewed, Roderick Deane, was on CNBC Asia last night. He is stepping down from Telecom and a couple of other boards he is on as well.

The way the interview went I was left with the impression that the proposed regulatory changes Telecom faces are a big reason for his departure. It is looking like they will have to open up to fixed line competition and allow foreign competitors access to its networks to offer competitive telecom services.

Long-term, competition is a healthy thing but shorter term it could make for a bumpy ride.