TelstraClear may return to Vodafone

TelstraClear is understood to be considering turning its back on its deal with Telecom Mobile and returning to selling Vodafone mobiles, after being denied the right to resell Telecom's XT mobile network till 2011.

TelstraClear inked a deal to resell connections to Telecom's CDMA network in August 2007 after falling out with Vodafone over margins and the collapse of TelstraClear's ill-fated $50 million Unplugged wireless initiative in Tauranga.

But the gloss wore off the new arrangement in October when Telecom announced that it would not give resellers access to its new $574 million XT network until 2011, leaving TelstraClear without a credible offer in the interim.

It is understood 2degrees' roaming deal with Vodafone would preclude it from teaming up with TelstraClear until after New Zealand's third mobile network operator builds out its nationwide network.

TelstraClear spokesman Chris Mirams would not comment.

An industry source says it is not clear whether reports that TelstraClear is in negotiations with Vodafone amount to posturing by the telco, or whether it is seriously considering burying the hatchet. TelstraClear is believed to have about 30,000 mobile customers.