Telecom mulls Cook Islands sale

Last updated 10:17 20/12/2013

Relevant offers


British American Tobacco offers to buy Reynolds in US$47 billion deal Ikea NZ Facebook page set up: Is it finally coming to NZ? Auckland Council and contractors ordered to pay $120,000 to the family of killed rubbish truck worker 71yo asked to stand on hot water cylinder to plug in phone after bizarre UFB install Tuanz welcomes Vodafone offer to keep internet users connected The video that exposed Samsung's problems in China Harnessing the power of Pokémon Go Mystery hotel brand to take over Old T&G building New Zealand's net migration back at record breaking levels at almost 70,000 SkyCity expects Crown Resort arrests to hit falling VIP gambling

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