Wireless Federation

Telecom New Zealand, posts a fall in profits by 34% in Q1′08. Net income fell to $88 million from $134 million year-on-year. Q1 revenues rose by 2.3% to $0.85 billion and EBITDA fell by 3.3% to $277.6 million all caused by the economic slowdown and the government’s decision last year requiring Telecom to allow rivals to access its local network and set the access charges.

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Telecom, New Zealand, plans an investment of $357 million in it’s 3G mobile services across the nation, which is yet to be rolled out. Telecom soughts to roll out it’s 3G services by June 2009, covering 97% of New Zealand.
The firm expects an increased total group capital expenditure of NZ$2.4 billion within next two years.

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NZ Communications (formerly known as Econet Wireless) has inked an agreement with Vodafone New Zealand to place its transmission equipment on 116 Vodafone cell towers. Also an agreement that talks about how NZ Communications’ mobile service will connect with Vodafone’s network has also been signed.
For the last seven years NZ Communications has been working towards a service launch but the company’s official lauch date is not yet revealed. Moreover the no. of cell towers built to date is not yet disclosed. Chief executive Mike Reynolds confirms that it is erecting towers in Auckland, Wellington and Christchurch.

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Vodafone New Zealand posts a 18% hike in it’s profits as they rose up to a record $191 million in the year to March. Revenues rose by 10% to $1.5 billion.
Vodafone also agrees to pay a dividend of $742 million to it’s UK based parent company. With Government’s step to bring competition to the market has also increased Vodafone’s pre-tax profit margins to 15%.
According to the Communication Minister, David Cunliffe, he is encouraging the mobile operator to reach an agreement with NZ Communication, the upcoming third mobile operator, which will allow NZ Communications to rent space on Vodafone towers.
The Commerce Commission is evaluating whether to regulate the fees Vodafone and Telecom charge one another to terminate mobile calls on their networks, which could bring down the price of calls and texts across networks.
The government is also consedering a ban on “two-tier” pricing, under which allows the two operators to charge subscribers more for calling and texting people who are not on their networks, and lower prices for “on-net” calls.

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Nick Reads, leaves his role as Vodafone UK’s CEO. He will be replaced by Vodafone Netherlands present CEO Guy Laurence.
Read has been appointed as CEO of the Asia-Pacific & Middle East Region, which will comprise Vodafone’s interests in Australia, China, Egypt, Fiji, India, New Zealand and Qatar.

Laurence has been a pat of Vodafone group since 2000 and has had a number of senior roles including CEO of Vizzavi, Vodafone’s original mobile internet venture, and Global Consumer Marketing Director before moving to Vodafone Netherlands.

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Telecom New Zealand gets NZD40 million (USD26.5 million) bill to cover the cost of the telecommunications service obligation (TSO) for the year to end-June 2006. The country’s Commerce Commission proclaimed that the cost of the TSO for 2005/06 will be NZD58.2 million, with Telecom liable to pay around 69% of this. Besides Telecom, Vodafone and TelstraClear are the main contributors to help subsidise the cost of providing telecoms services in unprofitable rural areas. Recently, the Commission set the final TSO bill for the 2004/05 year at NZD52 million.
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The mobile users will now have a choice of five mobile operators as two new entrants are all set to make a mark. The Australian-listed telco M2 and locally owned start-up Black and White are geared up to join Telecom, Vodafone and TelstraClear in the $2.2 billion market.

M2 and Black and White will be supplying the connections through a MVNO agreement that M2 had struck with Vodafone last year. M2 will be providing back-end administration and billing for both services, but will compete separately.

TelstraClear has sold businesses connections to Telecom’s CDMA network since November, and last week extended its offering to subscribers.

According to M2 chief executive Vaughan Bowen says, the service should launch this month and with it’s target market being the small businesses with fewer than 50 employees.

M2 will not act as a “price slasher”, but will be offering a “more personalised engagement” than Vodafone or Telecom. An unique and unusual feature of M2 is that subscribers can receive a “phone and fly” rebate of up to 15 cents in the dollar on their telco bills, that they can spend on travel products offered through a sister company.

Additionally, there can be tax benefits to this arrangement in Australia if the rebates are classed as a gift from a supplier, but the appeal is mainly “emotive”, says Mr Bowen.

Black and White founder and ex-Telecom staffer Johnathan Eele is also expecting to begin with the promotion of his service within weeks. The British migrant promises to bring a fresh attitude and more “transparency” to the industry.

The 10-person company will be selling phones online and may differentiate by offering post-paid connections with no minimum contract term.

Black and White will bring some new phones to the New Zealand market, including the “light and functional” Nokia 6220c handset.

“I am getting a lot of feedback that people are looking to change, but moving from Vodafone to Telecom and vica-versa just hasn’t seemed to have delivered a lot.”he says, even though there are many options in the country.

Both M2 and Black and White will use the “028″ prefix, but subscribers will be able to port their Vodafone or Telecom phone numbers to either telco.

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David Cunliffe, Communication Minister has asked  the Commerce Commission to think a new investigation into price regulation of mobile phone roaming. Roaming allows subscribers of one mobile network to use their mobile telephone handset on a different mobile network to make and receive calls. In result, new competitors to the market would be able to offer nationwide services while it builds its own network. Mr Cunliffe’s said the minister had accepted the commission’s view that the national roaming service should not be subject to price regulation. After making his decision, further potentially material evidence was brought to his attention, Mr. Cunliffe added. “I believe it important that this evidence be tested,” he said. “I am asking the Commerce Commission to consider whether there are grounds to commence a fresh investigation into whether, in light of this new information, designation, including price regulation, is warranted”, he further said.

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Telecom New Zealand, is in full force to start - off an all new $300 million 3G mobile network after the termination of share buy back and dividend reinvestment plan for it’s share holders.

“Telecom considers it is not prudent to proceed with the issue of shares under its dividend reinvestment plan for the upcoming quarterly dividend, or undertake the associated on-market share buyback of Telecom ordinary shares,” the company said.

Whereas Telecom NZ hasn’t yet released any details of it’s mobile network plans, it is expecting network completion by 2010.

The telco faces competition with it’s sole rival Vodafone, which is planning acceleration in plans for the new network. Therefore, TNZ is eager to deliver nationwide third generation mobile phone coverage before Vodafone.

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According to the Commerce Commission, New Zealand, New Zealand mobile calling plans continue to be well above the OECD average, at roughly 30 per cent higher.
Earlier the mobile rates which were at 135% of the average in February and reached to 139% in August 2007, have declined in comparison with the OECD.

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