Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

Telecom NZ AAPT sale – the big picture
Posted on 10-Dec-2013 12:30 by Bill Bennett. | Tags Filed under: News.



Telecom NZ did well selling its Australian AAPT business to TPG Telecom for A$450 million.

Although the amount is roughly one fifth of what it paid for AAPT in the 1990s, the sale price was higher than most observers and analysts expected.

Telecom NZ has been trying to get rid of AAPT for years. The unit lost its strategic value to the company years ago.

Whatever reason Telecom NZ once had to invest in Australian network assets finally evaporated after the Chorus demerger two years ago.

Change of direction

The demerger signalled a change of direction for the company. This has accelerated under the new management team lead by CEO Simon Moutter.

Moutter makes no secret of his goals. He aims for Telecom NZ’s brand to be synonymous with the internet. He wants to position Telecom NZ as the nation’s leading telecommunications retailer with a sharp focus on residential and commercial business.

An Australian network is not just a distraction, it also tied up capital which could be better deployed in New Zealand.

Fewer assets, more services

Moutter’s strategy is less about owning network infrastructure assets and more about selling mobile and broadband services. The delivery mechanisms are becoming less important than the products and services they enable. He wants to build a more competitive operation that does a better job of looking after customers.

The AAPT picture is only one of a string of strategic moves made in the past year:

  • In May Telecom NZ’s Gen-i unit sold the Davanti consulting business in a management buyout.
  • Geni-i also sold the Auldhouse training business in October.
  • In April Gen-i paid almost $100 million to buy the Revera data centre business.
  • As part of these changes there was a major restructure in the Gen-i unit including a substantial reduction in the size of its Australian operation.
  • Recently Telecom NZ invested in Sir Ray Avery’s Vigil medical monitoring business.
Telecom NZ also reduced staff numbers by around 1200 people during 2013.

Telecom still owns a small five percent stake in VHA, Australia’s third, somewhat troubled mobile carrier. You can rest assured that’s for sale.

[digitl 2013]

digitl on Google+



comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

So, how about that budget?
Created by BlueShift, last reply by MikeB4 on 22-May-2015 23:02 (67 replies)
Pages... 3 4 5


Changing of our flag , Yes or No.
Created by Presso, last reply by Geektastic on 25-May-2015 16:50 (142 replies)
Pages... 8 9 10


200mm zoom @ f/2.8 - can't nail focus - shutter speed?
Created by joker97, last reply by joker97 on 25-May-2015 19:27 (22 replies)
Pages... 2


Wanting a virtual cell phone for iOS and desktop, looking at 2Talk, but SMS costs and functionality unclear.
Created by Baboon, last reply by richms on 23-May-2015 04:17 (38 replies)
Pages... 2 3


CGA opinion: slippers worn out after 6 months
Created by timmmay, last reply by andrew027 on 25-May-2015 13:04 (30 replies)
Pages... 2


Geekzone giveaway: Samsung Wireless Audio-Multiroom M7
Created by freitasm, last reply by JayADee on 26-May-2015 05:11 (41 replies)
Pages... 2 3


Upgrading CPU: need some advice?
Created by kiwis, last reply by Lias on 22-May-2015 19:43 (39 replies)
Pages... 2 3


Best master filter?
Created by gzt, last reply by gzt on 24-May-2015 19:39 (12 replies)