Telecom may quit Australia - Analyst (Australia)According to an Australian telecommunication analyst, Telecom’s ailing Australia business has given up trying and will either reduce its presence there or leave the market altogether. Telecom had failed to provide sufficient investment or leadership to loss-making AAPT since it took a 100 per cent stake in the company in 2000. The acquisition cost Telecom $2.2 billion. After writedowns, it is carried on Telecom’s books at about $270 million.
Australian companies like iiNet and Internode had started a rapid land-grab of naked DSL customers, leaving AAPT as a bystander. Problems in merging AAPT and Powertel and minimal marketing and advertising had left the company with a diminished public profile.
The officials believe, the most likely option was for Telecom to cut its losses, start selling most of its Australian assets, and focus on serving trans-Tasman business customers.
Telecom considered selling AAPT in 2005. It said it received one offer and two joint-venture proposals, but decided to hold on to the company.
