Telecom mulls Cook Islands sale

CATHERINE HARRIS
Last updated 10:17 20/12/2013

Relevant offers

Industries

Fuji Xerox monitored by Government procurement agency, SFO will consider any new information Internet out for the day in parts of the Waikato Last cruise ship to leave New Zealand waters after bumper season MetService adverts too annoying, smartphone users complain 2degrees owner seeks to cut interest bill EV road trip heads slowly up NZ, stopping at fast chargers Invercargill-based online plant nursery making its mark Food labels may be designed to fool Venture capitalists could be 'crowded out' by Crown company, says industry body Clothes trading post Designer Wardrobe looks for Aussie conquest

Telecom is considering selling its majority stake in Telecom Cook Islands.

Telecom said it was weighing a possible sale of its 60 per cent interest in the company but no decision had been made whether to proceed.

Although Telecom declined to say more, Telecommunications Users' Association chief executive Paul Brislen said it was no surprise, as telcos generally had been pulling back on expansionist strategies from the end of the 1990s.

"Telcos could do no wrong, and then came the crash [in 2001-02]," he said.

Earlier this month Telecom also exited its Australian subsidiary AAPT which it bought for A$2.2 billion in the early 2000s. It has struggled in the competitive Australian market.

Analysts said Telecom got a good price for AAPT, which it sold for A$450 million (NZ$485m) to TPG. It sold AAPT's consumer division in 2010 for A$60m (NZ$75 million).

Commentators said Telecom had signalled earlier this year that it was shifting its focus from delivery mechanisms towards customer service in its mobile and data operations to improve revenue growth.

Brislen said AAPT had been "a disaster" for Telecom and its only successful overseas asset had been the Southern Cross Cable international internet network.

Telecom shares were unchanged at $2.35 after the announcement today.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content