Telecom will compete, says new chair 

Telecom's chairman designate Wayne Boyd says he will work to ensure the company can compete in the changing telecommunications environment. 

Boyd, a director of Telecom since 2004, has been named to succeed Rod Deane who is to quit as chairman at the end of this month. He signalled this month he would step down once a successor had been found.

The announcement comes just weeks after the government's plans to broaden access to cheap high speed internet were leaked, wiping $2.2 billion off Telecom's market value.

The company's share price has plunged about 20% since the government revealed on May 3 that it will unbundle the local loop - an announcement originally planned for the budget two weeks later.

Boyd, who is also and chairman of Auckland International Airport, Meridian Energy and Freightways, says Telecom plans to play a full part in the economic transformation.  But he stopped short of committing it to co-operating fully with unbundling. 

Boyd, who will take over from Dean on July 1, says the plunge in Telecom's share price doesn't faze him since he has proven stewardship with other people's money while leading other publicly-listed companies.

Deane was Telecom's chief executive from 1992 before becoming chairman in 1999.

Meanwhile, there is speculation that New Zealand billionaire Graeme Hart is lining up Telecom for a possible takeover.

The news of Boyd's appointment is finding favour with investors.

Telecom shares were up eight cents or almost 2% at $4.57 on Thursday afternoon, having traded between $6.45 and $4.31 over the past year.