Telecom shares fell to a new record low today after the company confirmed it's prepared to break up its business, to participate in the Government's ultrafast broadband initiative.

Telecom CEO Paul Reynolds says the initiative will fundamentally reshape the structure of the entire telecommunications industry, and that Telecom is undertaking a thorough assessment of the merits of structural separation.

In the wake of the announcement, Telecom shares today fell 7c to $1.92, a new record low, however the stock is today trading ex-dividend.

This means that from today a 6c share dividend is no longer payable, so the price is technically down just one cent.