The Electrical and Communications Industry Council is warning of a shortages of skilled workers to lay a broadband fibre-optic network and maintain exchanges.
The council is blaming Telecom for not providing enough money to pay competitive wages.
Spokesman Joe Gallagher says the workers are moving to Australia because they can double their wages there. He says Telecom is playing contractors against each other to the point where they just don't have the margins to pay staff properly.
Gallagher says by refusing to pay the money for decent wages and conditions Telecom is draining the country of people needed to keep telecommunication running.
Meanwhile, Telecom should know where it stands on its operational separation by the end of the month.
Late last month, Communications Minister David Cunliffe rejected an amended plan from the company. He wanted guarantees the wholesale business unit wouldn't favour the split retail unit over other customers.
Cunliffe has now received a revised separation plan from Telecom which he is reviewing. He says he will announce a decision next Monday.
