Simon Moutter, the newly appointed Chief executive officer has said that the company named, Telecom has lost its emotional connection with the people of New Zealand over the years.

"Over the years it feels like Telecom has lost its emotional connection with many New Zealanders," he said. Mr. Moutter is planning to reshape the company and make it a "customer-focused provider of information, communication and technology services."

He has worked chief operating officer of Telecom between 1999 and 2008. He pointed out that he has not returned to the company for simply cutting costs to solve the company's problems. H said that hs team will focus on customers and provide technology for instilling confidence for the future in New Zealand.

Chairman Mark Verbiest is backing Moutter's plans and said that he understands customers and the importance of the company to the country. He pointed out that the company's free cash flow generation has increased in recent times.

Verbiest said that he has asked Moutter to carry out a strategic review but did not announce any details of the review. However, Telecom's operating revenues has fallen 8.6 per cent to $4,575 million. The total net earnings were $1,157 million and net earnings from continuing operations were $311 million.