The salary package for Telecom Chief Executive, Paul Reynolds is said to have reached $3 million from $5 million that was earned by him in the previous year.

The Company posted a loss of 120,000 mobile connections to competitors during the past quarter. Telecom's XT mobile network saw major breakdowns this year and is said to have weighed heavily on mobile customer acquisition.

Reynolds has predicted a difficult time for the Company in the coming months as its underlying profit fell by 20% to $382 million in the year to June.

As Telecom too had been facing some lag effects from the XT commotion, the gifting of phones as Christmas presents too hadn’t been done ever since.

"We've come through the quarter that would be the most awkward given the experiences over the past year”, he added.

Questioning at the strategy that would be used by the Company for generation of the required growth in the mobile space, GS JBWere analyst Tristan Joll said that any such technique would take a lot of time.

The rebates and credits granted to the customers during the network outages too were one of the contributing factors leading to the present situation said Forsyth Barr analyst Guy Hallwright.

There is a probability that the Company would split by as early as mid-2011, if the proposal for participation in the Government-backed fiber broadband network, gets sanctioned.