Telecom-Vector partnership seen possible
Speculation builds around the race for the Auckland Crown Fibre contract.
Telecom and Vector could end up partnering on the Auckland Crown Fibre roll-out, one analyst told NBR – but a hookup might not happen until after the contract is awarded, with the winner encouraged to work with the loser.
Ever since the surprise announcement of Vector as a new priority bidder for the Auckland UFB network, rumours abound of a possible Vector-Telecom joint venture.
NBR put it to the companies, who were keeping it close to their chests.
Vector CEO Simon Mackenzie told NBR today that Vector was open to partnering with others, were it to make commercial sense.
“However it is important to note that under the current CFH process, they would need to facilitate such a process - we cannot proactively engage with another party.”
Telecom would not comment further today, but chief executive Paul Reynolds has previously said his company is open to partnerships – albeit from the point of being the primary contractor.
Senior analyst at Forsyth Barr, Guy Hallwright, echoed Mr Mackenzie’s statement that the tender process prohibits a joint bid and that changing this would not be possible in the few weeks that are left until the process is finalised.
Lowest cost option
“It would probably be a sensible thing to do to achieve the lowest build cost but they are leaving it rather late in the day,” Mr Hallwright said.
Winner work with loser
The Forsyth Barr analyst thought that instead the announcement might indicate the government was clearing the way for the companies to work together.
“I think it’s more likely that Crown Fibre Holdings would award the bid to one or the other but then encourage one or the other to do deals with the other.”
Alex Walls
Fri, 18 Feb 2011
Fri, 18 Feb 2011
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Telecom-Vector partnership seen possible
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