All these investments have been made under the existing regulatory regime.
Government and opposition politicians have announced their intention to
impose varying degrees of change on the current regulatory regime. The views
and recent investment decisions of our competitors support my belief that
such changes are neither desirable or necessary. However, one of Telecom’s
key strategies has always been to compete vigorously and fairly and we have
always worked within whatever rules are in force at the time. We will
continue to work within whatever rules may be imposed in future but we will
also continue to remain focused on pursuing business strategies designed to
grow returns for our shareholders. It is this focus that has made Telecom
the success it is today and will ensure it continues to succeed in the
future.

Peter Shirtcliffe
Chairman