TelstraClear sale includes non-compete clause, scotching Telecom talk

Telstra chairman Gordon Ballantyne

The $840 million sale of TelstraClear to Vodafone includes a non-compete clause, Telstra chairman Gordon Ballantyne told a media conference in Auckland this morning.

Mr Ballantyne declined to detail the clause, or how long it would last.
But it would appear to dramatically lessen - if not totally eleminate - the possibility that TelstraClear was clearing the decks before making a run at Telecom. Equity analysts have already all but dismissed the possibility.
Vodafone NZ CEO Russell Stanners will lead the combined company. 
TelstraClear had no comment on what role, if any its CEO Allan Freeth would play in the combined company - other than to confirm that Dr Freeth will stay on in his current role while regulators access the deal - a process that is expected to take months.
Mr Stanners confirmed the popular analyst theory that the deal would give his company a boost in the lucrative corporate market - where TelstraClear is relatively strong, but Vodafone has a lower profile.
He said there would be job losses in over-lapping back-office roles, but did not quantify numbers. Vodafone and TelstraClear each have around 1300 staff.
TelstraClear has outsourced call centre roles over the past couple of years, while Vodafone has gone in the opposite direction, bringing help desk roles back to NZ last year. Last month, Vodafone said it would bring 100 technical roles, currently handled in India, back to NZ.
Telecom shares [NZX:TEL] were up 1.19% to $2.55 in late afternoon trading.

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12 Comments & Questions

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I hope the new owner will bring Telstraclear's call centre roles back to our country. It's difficult to understand their technical personnel in their thick Indian accent.


Seriously? Are you that much of a hick that you cannot tell the difference between a Indian and Filipino accent? Question: what is a think Indian accent? Apu from the Simpsons? There is a difference.


Different Perspective - What is a 'think' Indian accent? Well educated middle-class?


It was a typo. Given that it was a reply to the previous statement anyone would have assumed what I meant.


It would be nice to have call centre staff operating out of a near brand new, custom built call centre on the Kapiti Coast once again - seemed a totally dumb idea for TelstraClear to set up in a brand new facility there to then close it all down and outsource it offshore within a year or so.


Just like all the other great ideas that finally led to this.


We live in muti cultral socitey here in NZ, you would find working NZ in call centres from all walks of life race included.... so what diffrence would it make if call centre is here or not! At the end of day its business call if business make profit in countries like India, Manila and as long as the services are provided, its fair call. We should just get over this racist remark and accept we are living in a global economy the earlier the bettert!


It has nothing to do with racism, you have got that 100% wrong. The Filipino Help Desk seem to have less technical knowledge, can't pronounce NZ place names, suggest a call back in two days & FAIL to escalate technical issues (back to NZ) when asked to etc....

General speaking, the customer "service" experience is very poor when the Help Desk is outsourced overseas. Sure, it may save $$, but the service is aweful.

Go ask Telecom NZ Customers, as they also have a Filipino Help Desk!


You miss a vital point - outsourcing any CSR positions overseas means NO JOBS for New Zealanders - that is NOT GOOD!! OK!


We find it just about impossible to contact the 'Call Centre' they just put you on hold. Or "we will ring back within 2 days"! BUT they are keen to charge us top dollar for 2 GB!!!!!, must be the most expensive ISP in the world.


Its nothing to do with racism. Its just a simple matter of fact that it is often so much more difficult for me as a Kiwi, born and bred, to understand someone else for whom English is a second - or third - or whatever - language, or who doesn't speak "Kiwi English". I even have great trouble understanding a broad Scottish accent!


Call centre moans aside, what really is happening here is a creation of a comfy duopoly with comcom permission against the interests of consumers.
. Don't believe me? Our supermarket duopoly was created with comcom permission!!!


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