Telecom New Zealand is well poised to take advantage of any opportunities that arise from the merger of Vodafone and TelstraClear approved by the Commerce Commission this morning, CEO SImon Moutter says.
“We’ve always respected Vodafone and TelstraClear as competitors and we don’t see that changing now they’re coming together as one company,” Mr Moutter sats.
“At the same time, we know from past experience how potentially distracting significant operational change can be to an organisation and to their customers.
"We’re keen to engage with any prospective customers who may be unsettled by the Vodafone-TelstraClear merger and want choice in their telecommunications company.”
Earlier, Deutsche Bank's Geoff Zame told NBR the deal was "clearly negative" for Telecom. It made Vodafone more competitive in the corporate market against Telecom's Gen-i division, and delivered it critical mass in the retail market.
However, with the deal public since July, and no surprises in this morning's approval statement by the Commission, Telecom investors took events in stride.
The company [NZX:TEL] was up 1.68% to $2.42 in late morning trading, outpacing a broader market rise [UPDATE: it closed at $2.42].
Telecom (above) and Chorus have had mixed NZX peformance since the Vodafone-TelstraClear deal was announced July 12. It received approval today. (Source: S&P Capital IQ; click to zoom). Chorus was spun-off in November 2011.
Mr Moutter is still working on his "ambitious" and "powerful" new stratetic plan for Telecom, due to be unveiled at an unspecified time early next year - although he has already flagged that he wants to "draw a line in the sand" against eroding retail broadband share. Mobile and the UFB will be other points of focus.
The Telecom boss could face a determined challenge - with a personal edge.
"Hopefully the two combined together will have the ability to shake up the market and to challenge Telecom for the number one spot – a long-held goal of Vodafone CEO Russell Stanners," Telecommunications Users Association head Paul Brislen told NBR this morning.
Chorus NZX peformance since the Vodafone-TelstraClear deal was announced July 12. It received approval today. (Source: S&P Capital IQ; click to zoom).
Less reliance on Chorus
Vodafone has said post-merger it wants to utilise TelstraClear's fibre backhaul network, reducing its reliance on Chorus.
Again, the statement has been in the market months and Chorus investors did not react strongly to today's confirmation of the merger.
In late morning trading, Chorus shares [NZX:CNU] were up 0.3%, in line with the broader market [UPDATE: Chorus closed down 0.89%].
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- I don’t take it personally, says Metro chairman Sir John Goulter, about remarks from shareholders
- “We have a unique position with Stuff anywhere we can think of in the western world," says Sinead Boucher
- Don Brash questions Grant Robertson on Labour's plans to shake-up the RBNZ Act
- Meridian CEO Mark Binns says he won't be joining Fletcher Building
- The Greens are politely telling Labour to print out their MOU and use it for some sort of home-made suppository, says Rob Hosking
- NBR Radio: best of the week ended August 18, with Grant Walker