telecom new zealand
|location||auckland, new zealand|
|key people||theresa gattung, ceo. roderick deane, chairman|
|revenue||nzd 5,605 million (2005)|
telecom new zealand nyse: nzt is a wellington-based telephone company formed after the privatisation of the new zealand post office in 1990 and is also new zealand's second largest mobile operator. telecom is the largest company by value on the new zealand exchange (nzx) and movements in its share price have a great influence on the index of movements in the top forty companies.
telecom was formed in 1987 from a division of the new zealand post office and privatised in 1990. the selling price is considered by many to be extremely low, given that telecom had a monopoly of all phone lines in new zealand at the time. others consider that the capital requirements to modernise the network were better provided by private enterprise than the government.
telecom mobile is new zealand's second largest mobile operator, with about 49.5% market-share, behind vodafone. telecom operates amps, digital d-amps/tdma and cdma, including ev-do mobile phone systems in new zealand. amps and d-amps service is sold under the 025 brand and cdma services are sold under the 027 brand. telecom is currently phasing out the older 025 network. most of their customers have migrated over to the 027 network. telecom is set to turn off the 025 network in 2007. the 027 cdma ev-do network is marketed as t3g, a 2 mbit third generation mobile system.
customer numbers and market share
the following is customer numbers and market share information for telecom mobile, which includes both 025 and 027 customers. since vodafone took over bellsouth in the late 1990's telecom's market share has dropped every year.
in 2005 telecom launched new zealand's first 3g network using the brand name t3g. being first into the 3g market in new zealand, along with agressive marketing and a $10 a month text message package has allowed telecom to claw back some market share from vodafone. in november 2005 telecom reported 72,000 new mobile phone customer, compared to 27,000 for vodafone.
|quarter||no of customers||market share %|
|march 2005||1,520,000 (approx)||44.6%|
recent information shows telecom to have 1.6 million customers - against vodafone's 1.9 million customers.
telecom has been criticised for using its status as a government protected monopoly to charge high prices while providing poor service. while there are competitors in the cellular services and tolls markets, it has proven difficult for other companies to establish residential services due to telecom's control of local loop services. telecom has also leveraged its control of residential services to establish the country's largest isp, xtra.
competitors allege that telecom engages in unfair practices to prevent competition from arising, and resells broadband capacity to xtra at lower prices than to other isps.
in july 2005, two dozen internet service providers formally complained to new zealand's commerce commission via a letter.notably absent from the list of signees were telecom's isp, xtra, and isps owned by telstraclear.excuses
in this article, on 25th october 2005, telecom tried to claim that the reason for poor broadband uptake in new zealand was because of free local calling. telecom says customers have the option of moving to faster broadband services, but free local calling creates a disincentive by allowing them to use dial-up for as long they want. however, internet experts disagreed and even the secretary of the oecd took a shot at telecom.
effects of monopoly
the new zealand treasury has estimated the economic loss from telecom's monopoly to be in the region of $50–$250 million a year. another study commissioned in 1998 by rival company clear (now telstraclear) estimated that the loss was $400 million a year.