Vodafone updates TelstraClear takeover, outlines savings

BUSINESSDESK: Vodafone New Zealand, the country's biggest mobile phone operator, has outlined where it expects cost savings in its $840 million acquisition of Telstra Corp's local unit in an updated notice to the anti-trust regulator.

The Auckland-basedcompany is pinning its expectations on customers benefitting from the savings it can make through ending management and back-office double-ups, according to a revised public version of its notice seeking clearance to buy TelstraClear.

The Commerce Commission expects to make a decision on whether to approve the deal today.

Vodafone says it will achieve savings by using TelstraClear's backhaul and transmission services, without publishing how, and will also cut its reliance on Chorus, the dominant telecommunications infrastructure firm, for wholesale network access.

The merger "overlays TelstraClear's network and UCLL (unbundled copper local loop) footprint, thereby improving margin as Vodafone will be able to move from acquiring wholesale access to UCLL access or TelstraClear's cable network", the company says.

The latest version also flags savings related to wireless spectrum, without offering more detail.

Vodafone had previously blanked out the efficiencies from the public version of its notice.

If the deal is not approved, Telstra will retain ownership of TelstraClear, the updated notice says in a largely purged counterfactual to the deal going ahead.

This article is tagged with the following keywords. Find out more about My Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Awesome Vodafone get to spirit even more money out of NZ's economy and hurt even more kiwi businesses

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7772 -0.0007 -0.09%
AUD 0.9506 -0.0010 -0.11%
EUR 0.6332 0.0004 0.06%
GBP 0.4972 0.0008 0.16%
HKD 6.0255 -0.0070 -0.12%
JPY 92.7270 0.1820 0.20%

Commods

Commodity Price Change Time
Gold Index 1198.3 8.880 2014-12-18T00:
Oil Brent 59.3 0.110 2014-12-18T00:
Oil Nymex 54.4 -2.250 2014-12-18T00:
Silver Index 15.9 0.006 2014-12-18T00:

Indices

Symbol Open High Last %
NZX 50 5518.5 5545.0 5518.5 0.17%
NASDAQ 4712.4 4748.4 4644.3 2.24%
DAX 9901.3 9901.3 9811.1 -0.30%
DJI 17367.8 17778.4 17356.9 2.43%
FTSE 6466.0 6521.7 6466.0 0.46%
HKSE 23158.3 23189.6 22832.2 1.25%
NI225 17511.0 17621.4 17210.0 2.39%