Memorandum of Understanding to form a single organization to compete in the telecommunications industry was signed between the two consortiums. This led to the creation of The Alternate Telecommunications Company (ATC) on 1 August 1990, the four main shareholders being TVNZ, BCI, Todd Corporation and MCI. New Zealand Railways Corporation was to have Board representation and equity options. The two business plans were then brought together - Todd MCI's venture was going to cost $80 million, and the BCI/BCL venture was to cost an estimated $125 million. George Newton was appointed Chief Executive of the ATC and he and Robert Brydon, Ted Trimmer, Darryl Dorrington and Neil Tuckwell began work on the agreements needed before the company could begin trading. Among the eighteen Conditions Precedent, the main ones included a Heads of Agreement with Telecom, a service agreement with BCL and New Zealand Railways Corporation (the Railways Corporation was split into two in October 1990, with the fibre optic circuits going to a new entity, New Zealand Rail Limited) to provide their respective microwave and fibre optic cable facilities, an agreement with TransPower, service agreements with BCI and MCI to contract experienced people from North America, approval from the Commerce Commission and foreign investment approval. One of the roadblocks for new entrants had been the absence of a specific telecommunications regulatory body. Telecom had established the Permission to Connect (PTC) document, the lifeblood of the business. This meant that the dominant carrier was setting the rules. And since Telecom had not contemplated local service or 0800 service competition, the Agreement with Telecom would prove the most difficult to achieve. Staff en route from North America to join the new ATC told the minister, Richard Prebble, that they would cancel their network switch order due to the delays in getting an agreement with Telecom. ATC then agreed to defer cancelling while the Minister got Telecom to the table. On 24 August 1990 Telecom had publicly welcomed the merger of the joint ventures and stated that competition was "healthy for the industry and would benefit all our customers." A memorandum of Agreement was signed with Telecom covering toll by-pass, alternative networks, local services and 0800. A shareholders agreement was concluded and signed on 4 September and shareholders funds, available for the first time, were in excess of NZ$100 million. The four main shareholders would each initially have 25% equity. ATC's first consignment