Axia NetMedia's shares fall

Axia NetMedia’s share price fell 4 per cent during intra-day trading after the company failed to make the shortlist for the Government's $1.35 billion ultrafast broadband investment scheme, but ended the day up one cent after a late trade reversed those losses.

The Canadian company's shares hit a high of C$1.85 this week on the Toronto stock exchange, but slipped to C$1.66 in the wake of the UFB announcement, last trading at C$1.74.

Chief executive Art Price has spent much of his time in New Zealand over recent months chasing the UFB contract, but revealed few details of the company's  intentions.

The company is heading a consortium that is rolling out a home fibre network in Singapore. Other UFB bidders and some analysts questioned what the mid-sized Canadian firm could bring to the table here in terms of capital or network assets.

Crown Fibre Holdings chairman Simon Allen said Axia's UFB bid "included certain elements that were not part of the Government’s UFB policy".

Axia has expressed interest in competing for a separate $300m contract to help improve broadband infrastructure in rural areas, bids for which are due in November, but it appears its involvement could be in doubt.

"Key elements of Axia's national UFB proposal served to also support the rural and wireless sectors so we are evaluating whether Axia's continued participation in the Rural Broadband Initiative competitive bid process is worthwhile," Mr Price said.

- © Fairfax NZ News