Skip to Content »

Wireless Federation » archive for 'Telecom New Zealand'

Pacnet tables a bid of $420Mn for AAPT (Australia)

  • December 3rd, 2008
  • 5:57 am

According to a media report, Pacnet, the company formed by the merger of Asia Netcom and Pacific Netcom, has posed a bid of US $420 million for Australian telco AAPT. According to company’s close source, Pacnet is targeting AAPT, a subsidiary of Telecom New Zealand as it looks to round its Asia-wide telecoms network. The offer is anticipated to be financed with cash and equity and it is believed that the firm may deem an initial public offering (IPO) as soon as next year.

Telecom NZ reports a decline of 34% in profits (New Zealand)

  • November 10th, 2008
  • 7:25 am

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.

   

Telecom New Zealand strives to launch $300 million 3G network (New Zealand)

  • September 8th, 2008
  • 5:48 am

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.

   

Telecom NZ’s earnings drop 25 percent in Q2 (New Zealand)

  • February 11th, 2008
  • 1:07 pm

Telecom New Zealand reported net earnings of NZD 172 million for the second quarter ended 31 December 2007, down 25 percent from NZD 229 million in the year-ago quarter. Revenues went up 2.1 percent to NZD 1.42 billion, versus NZD 1.39 billion while EBITDA rose 4.4 percent to NZD 453 million. Tax expenses in the quarter were higher and earnings before tax totalled NZD 231 million, versus NZD 211 in Q2 a year earlier. The 2006 December quarter also included NZD 24 million in net earnings from discontinued operations: the Yellow Pages Group which was sold last year.

Mobile revenue decreased in the quarter by 4.7 percent year-on-year to NZD 201 mail, primarily due to declines in device sales, voice usage and pricing, partially offset by an increase in mobile data revenue. Mobile data revenue was stable at NZD 57 million. Blended ARPU in the quarter was NZD 3 7.9, down 16.5 percent year-on-year. Telecom ended 2007 with 2.12 million mobile connections, up 13 percent year-on-year. Of the total customer base, 39.4 percent were postpaid subscribers, while 60.6 percent were prepaid connections.

Broadband and internet revenue increased by 3.6 percent to NZD 86 million, and the number of connections went up 29 percent year-on-year to 674,000. The effect of this growth on revenue is still negated by the reduction in pricing for business customers that occurred in the quarter. Telecom expects that the introduction of new regulated broadband services such as naked DSL and LLU will accelerate the rate of broadband penetration, and may result in further downward pressure on wholesale and retail broadband prices. Wholesale revenues should continue to grow strongly given the introduction of these new regulated services and the overall growth expected in the broadband market. Wholesale local service revenues and wholesale broadband revenues went up 52.6 percent and 36.4 percent respectively.

For the year ending 30 June 2008, Telecom expects EBITDA from New Zealand operations to decline 5 to 8 percent, with Q3 likely to be weaker than Q4. EBITDA from Australian operations is forecasted to total AUD 80 million to AUD 90 million. Group consolidated net earnings are expected to come in at NZD 700 million to 730 million, including an additional NZD 10 million of after-tax dividends from Southern Cross Cables Group.

   

New Zealand govt seeks comments on TNZ separation plan (New Zealand)

  • October 29th, 2007
  • 3:24 pm

The New Zealand Communications Minister David Cunliffe has called for public submissions on Telecom New Zealand’s (TNZ) draft separation plan. Cunliffe has noted that some aspects of the next generation network migration plans contained in the draft separation plan remained a work-in-progress. Cunliffe has welcomed the change in Telecom’s approach to the separation process. Submissions must be received by the Ministry of Economic Development no later than 17:00 on 23 November.

   

Hutchison sells stake in 3 Australia to Telecom NZ (New Zealand)

  • October 11th, 2007
  • 2:20 pm

Hutchison Whampoa has agreed to sell a stake in its Australian mobile operator 3 to Telecom New Zealand. Telecom will acquire 10 percent in Hutchison Telecommunications Australia for AUD 330.6 million and receive an option to raise its stake to 19.9 percent. Hutchison Whampoa’s stake in the Australian company will drop to 52 percent from 57.8 percent and it will book a gain of HKD 900 million on the deal.

   

“Strong pull factors” attracted new CEO to Telecom New Zealand (New Zealand)

  • October 5th, 2007
  • 1:19 pm

Having completed his long journey from offices hard-by St Paul’s Cathedral in London to Telecoms New Zealand’s (TNZ) HQ in Auckland, the carrier’s new CEO, Paul Reynolds, has been inducted into the company and appointed to the board.

Mr. Reynolds immediately outlined plans to consult widely on ongoing challenges and take what he calls “the most sensible path forward for shareholders and customers.”
 
While the new CEO’s rhetoric echoes that of Australia’s Telstra, TNZ’s rival across the Tasman sea, the fact is that Paul Reynolds is leading his company in a very different direction to Telstra.

TNZ claims to be embracing regulatory change and to be well underway with newly-mandated separation requirements, while Telstra remains locked in a pitched battle  with the Australian government and has threatened legal challenges to any attempt to enforce the company to split.
 
Mr. Reynolds, who has joined TNZ after leading the separation of BT in the UK, says acceding to government makes sense for the benefit of shareholders, customers and staff.

“This principle is a simple yet powerful one. It makes sense,” Mr. Reynolds said at the TNZ annual general meeting in held in the South Island city of Dunedin.

He continued, “Though the largest player on the New Zealand telecommunications scene, Telecom is no longer a monopoly – and hasn’t been for some time. The final form of operational separation, in combination with other regulatory decisions, will accelerate that process.”
 
TNZ chairman, Wayne Boyd, has outlined five key projects the company must address concur-rently: unbundled local loop and wholesale broadband regulation, operational separation, next-generation network deployment, PSTN voice replacement and WCDMA network upgrade.

Yesterday, he called the appointment of Paul Reynolds to the post of CEO “a watershed” for the company. Mr. Boyd went on to confirm that a “workable separation model” should be agreed with the New Zealand government by year-end and that the strategy will be ready for implementation next March.

Although TNZ board members and senior executives were widely reported to have been opposed to any plans for separation, Mr. Boyd insists they are now all fully behind the plans and ready, willing and able to embrace change.
 
He said, “Change is a way of life in the telecommunications industry, where the regulatory, consumer and technology currents all move rapidly. Change means new challenges and lots of opportunities. There is now industry-wide acknowledgment that we have engaged openly and showed integrity in our dealings with industry and our wholesale customers.”

Paul Reynolds played a major part in guiding TNZ’s negotiations with the government prior to his arrival in New Zealand and says he will now extend conversation with stakeholders.
“I’ll be looking better to understand the character of that debate as it applies here, and assess Telecom’s part in it. If you can do it, getting things right first time every time is ultimately a good way to run a company.”

The New Zealand government has directed that TNZ be separated into three units: network, wholesale and retail. The carrier has already established a separate wholesale entity and is increasing the scale of its Gen-I enterprise business as well as investing in Australia.

Wayne Boyd says,“While we now comprise a number of businesses we are a sustainable entity and one that is focussed on delivering greater shareholder value and focussed on meeting customers needs.”

Paul Reynolds has also revealed that he plans to look closely at what’s happening in Australia where TNZ is currently monitoring the integration of AAPT and PowerTel and examining opportunities to grow in the wholesale market. Last week PowerTel announced a major new wholesale supply deal with Macquarie Telecom, thus effectively taking away from Telstra as much as A$100 million in potential annual revenues.

According to Mr. Reynolds, “We have a strong team over there [in Australia] and we’re anticipating benefits from the integration of PowerTel and AAPT.”

He added, “I’ll be trying to meet as many of our customers, shareholders and other stakeholders as possible, here and in Australia. While I will be based in Auckland, I intend to roam far and wide.”

Asked about his move from the UK, Pail Reynolds said strong “pull factors” had drawn him to TNZ. The company’s shareholders yesterday approved his remuneration package, that includes a NZ$1.75 million salary and NZ$1.75 million annual performance-based cash and share package. Up to NZ$1.75 million of rights shares will also be paid contingent on company long-term performance.

Company chairman, Wayne Boyd, says management will establish measures for the annual performance-based package within the next 60 days. These could include EBITDA and strategic targets. The long-term remuneration agreement is based on TNZ’s performance against a group of 20 global telecom companies. It requires TNZ to be above the 50th percentile of them.

   
 

Telecom network split to go ahead (New Zealand)

  • September 26th, 2007
  • 12:50 pm

The New Zealand government has announced that it is going ahead with its plan to split national PTO Telecom New Zealand into three separate operational units to provide retail, wholesale and network services. Communications Minister David Cunliffe says the split is due to be carried out by end-March 2008 and will create a more level playing field in the telecoms market, with all operators having equal access rights to Telecom’s local infrastructure. The reorganisation, which was first announced in April, is expected to cost around NZD200 million (USD148 million) over four years and an independent oversight group is being created to monitor the process. Telecom has already begun setting up a wholesale division and is soon to begin the process of separating its network business. The firm says it will publish its proposals for the implementation of the split within the next four weeks. Both the government and Telecom have denied rumours that there are plans to sell off the access network once the split is complete.

Meanwhile, Telecom New Zealand has contracted Alcatel-Lucent to supply IP/MPLS switching and routing products to support the delivery of next generation residential services. The vendor will be supplying its 7750 service router. The financial details of the deal were not disclosed.

   

 

New Zealand sets requirements for Telecom separation (New Zealand)

  • September 26th, 2007
  • 10:24 am

The New Zealand minister of communications has issued a directive detailing the requirements for the planned functional separation at Telecom New Zealand. The directive deals with the scope and governance of the required access network services unit, which will manage the local access network; the basis for local loop unbundling and bitstream access; migration of existing services to the new organisation; structure and powers of the independent oversight group; and a range of safeguards based on the principles of standalone, arms-length, equivalence and non-discrimination. In response, Telecom said it was a “demanding” programme and it would work on its proposals for implementation and undertakings over the next four weeks. The reorganisation is expected to cost NZD 200 million in capital expenditure over the next four years, with operational costs of up to NZD 40 million per annum over this same period. Telecom has already set up a wholesale unit and will start work on the separate access network services unit. The operator denied any talk of selling the ANS unit and said no jobs will be cut due to the restructuring. According to unsourced media reports, Telecom agreed with the government to sell the network unit, valued at more than NZD 3 billion.

   

TelstraClear tests Telecom’s HSNS (New Zealand)

  • September 3rd, 2007
  • 3:10 pm

Telecom New Zealand has announced that Australian-owned rival TelstraClear has become the first of the country’s alternative operators to test its new wholesale fibre-based high speed network service (HSNS). The pilot, which was launched last week, is testing the connectivity and handover between Telecom’s HSNS and TelstraClear’s own network. Mark Wilson, head of the Enterprise and Government division at TelstraClear, says: ‘This new platform allows us to extend our leading high-end voice and data services to areas beyond our current network reach. It opens up competition, enabling us to offer services to customers who were previously unviable due to network build constraints. We’re pleased to be the first to trial the service, and look forward to bringing it to market shortly.’ HSNS provides access options of 10Mbps, 100Mbps or 1Gbps, delivering speeds from 128kbps up to 1Gbps.