BCL is to be split from TVNZ, so it can focus on its core business without having to report to the TVNZ board.
Broadcasting minister Steve Maharey announced the government will amend the TVNZ Bill, presently before parliament, to enable the creation of a separate transmission business, THL (Transmission Holdings Ltd), which includes BCL and TVNZ Australia.
THL will be set up as an SOE and TVNZ itself as a separate crown company.
The TVNZ Bill in its present form calls for TVNZ and the transmission business to be a crown company and report to a parent board.
A spokesman for Maharey says the decision "is related to the nature of BCL's business - part of the government's rationale is that it wants to enable the boards of both companies to focus on their core business.
"BCL has many lucrative opportunities which will require a lot of attention and it's important that they're able to devote their energies to them.
"We want them to focus on the BCL part of BCL."
BCL spokesperson Anna Radford says the matter is "a shareholder decision," and BCL has "no comment as yet".
BCL is involved as a co-bidder in the govenment's Probe regional broadband initiative, partnering with Telecom and other telcos to bid for Probe contracts in most of the regions the project is covering.
Next year, BCL will begin offering IP-based services, following the completion of an IP upgrade to its nationwide transmission tower-based network by Ericsson.