Telecom Corp of New Zealand Ltd. and Vodafone Group Plc, the...

Telecom Corp of New Zealand Ltd. and Vodafone Group Plc, the country?s two largest telecommunications groups, submitted a joint bid to build a broadband internet network across New Zealand?s rural areas.

The proposal is the companies? joint response to the government?s Rural Broadband Initiative, which seeks to provide broadband to 97 percent of rural schools and 80 percent of rural homes within six years, according to a statement today. Under the proposal, Telecom and Vodafone will also invest more in their own networks in the areas.

The companies plan to combine their resources by extending Telecom?s existing cable infrastructure and Vodafone?s wireless network, according to the statement. The bid process for the RBI is being managed by the Ministry of Economic Development and a decision is expected by Christmas, the statement said.

?By collaborating, our companies are showing that the telecommunications industry is working for the good of New Zealand,? Telecom?s Chief Executive Officer Paul Reynolds said in the statement.

If the companies? joint bid is accepted, any material changes to Telecom?s earnings guidance will be ?unlikely,? the statement said.