Spark launch: 8th August 2014

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#1078105 1-Jul-2014 17:33

ajobbins:
mattwnz: Although it is not our money, unless you are a shareholder. But IMHO it is a bit excessive, when as a company their shareprice has dropped a lot. But I suppose if they want to compete they have to change the perception people have with the old name.

Ultimately it's their customers that pay for this, not shareholders.

Only if customers are paying more as a result, which I don't think is the case. But it is probably coming out of profits, which means less money going back to shareholders. So the shareholders carry the cost with smaller dividends, and I know they have decreased from what they once were.

Probably not the best day for them to release this press release considering more problems with their Xtra yahoo email service, now down for over 6 hours.

ajobbins

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#1078115 1-Jul-2014 17:49

mattwnz: Only if customers are paying more as a result, which I don't think is the case. But it is probably coming out of profits, which means less money going back to shareholders. So the shareholders carry the cost with smaller dividends

But they don't. Decreased dividends from the past are a different issue. I seriously doubt shareholders will see a smaller dividend as a result of this rebrand. It will be paid for from operating funds that otherwise might have been used to invest in new technology, or as revenue that might have otherwise been uncollected through more competitive pricing etc.

See my previous post. Shareholders are typically not very tolerant of wearing the cost of these kind of things.

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MikeB4

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#1078118 1-Jul-2014 17:55

ajobbins:
mattwnz: Only if customers are paying more as a result, which I don't think is the case. But it is probably coming out of profits, which means less money going back to shareholders. So the shareholders carry the cost with smaller dividends

But they don't. Decreased dividends from the past are a different issue. I seriously doubt shareholders will see a smaller dividend as a result of this rebrand. It will be paid for from operating funds that otherwise might have been used to invest in new technology, or as revenue that might have otherwise been uncollected through more competitive pricing etc.

See my previous post. Shareholders are typically not very tolerant of wearing the cost of these kind of things.

I don't have a problem with this investment in brand development

mattwnz

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#1078119 1-Jul-2014 17:55

ajobbins:
mattwnz: Only if customers are paying more as a result, which I don't think is the case. But it is probably coming out of profits, which means less money going back to shareholders. So the shareholders carry the cost with smaller dividends

But they don't. Decreased dividends from the past are a different issue. I seriously doubt shareholders will see a smaller dividend as a result of this rebrand. It will be paid for from operating funds that otherwise might have been used to invest in new technology, or as revenue that might have otherwise been uncollected through more competitive pricing etc.

See my previous post. Shareholders are typically not very tolerant of wearing the cost of these kind of things.

Well they have downsized their staff, which could be one area they are saving money in. But the current share price and it's huge drops over recent years do show that shareholders haven't been that happy with lower revenue and reduced dividends, and the share price is largely based on returns people get. But in the grand scheme of things, rebranding shouldn't be that expensive, and it is only half a rebrand, as the logo is still the old one. So there was probably a big saving there.

alasta

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#1078182 1-Jul-2014 19:49

I'm surprised that it's taken this long to rebrand. Historically the Telecom brand has been perceived as conservative and middle aged, and I was half expecting them to rebrand ten years ago when their '$10 text' promotion started gaining them some traction with the yoof.

matisyahu

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#1078369 2-Jul-2014 02:10

ALTRON: Expanded 4G coverage would of been better than a superficial name change.

I doubt that'll happen, I mean, this is the same company that has remained with Yahoo after constant problems then there was the 'awesome' Bebo phone - I sometimes wonder whether those making the decisions are either getting close to retirement or completely out of touch given whom they form relationships with. Honestly at this point I'm wondering whether they're going to have an arrangement with MySpace and launch a smartphone.

"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"

profrink

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#1078418 2-Jul-2014 08:35

I agree with doing a re brand but not so much with the chosen name. Just feels like a weak attempt.

From what I've heard they are essentially only replacing the word 'Telecom' with 'Spark and 'Spark Digital' (Gen-i), so may not be as costly as a full re brand.

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MikeB4

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#1078420 2-Jul-2014 08:40

profrink: I agree with doing a re brand but not so much with the chosen name. Just feels like a weak attempt.

From what I've heard they are essentially only replacing the word 'Telecom' with 'Spark and 'Spark Digital' (Gen-i), so may not be as costly as a full re brand.

it's been happening for a while, the new Logo being around now for quite a few months and makes more sense with the new name. It's cool.

old3eyes

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#1078433 2-Jul-2014 09:19

alasta: I'm surprised that it's taken this long to rebrand. Historically the Telecom brand has been perceived as conservative and middle aged, and I was half expecting them to rebrand ten years ago when their '$10 text' promotion started gaining them some traction with the yoof.

I don't see Telsta AU rushing out to change their brand just because it's been around for 20 years plus or Vodafone .. If fact most of the telcos around the world have not changed brands just for the sake of it. They have in the case of the US when mergers have taken place.

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Old3eyes

NonprayingMantis

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#1078436 2-Jul-2014 09:34

old3eyes:
alasta: I'm surprised that it's taken this long to rebrand. Historically the Telecom brand has been perceived as conservative and middle aged, and I was half expecting them to rebrand ten years ago when their '$10 text' promotion started gaining them some traction with the yoof.

I don't see Telsta AU rushing out to change their brand just because it's been around for 20 years plus or Vodafone .. If fact most of the telcos around the world have not changed brands just for the sake of it. They have in the case of the US when mergers have taken place.

France Telecom -> Orange

BT Mobile -> O2 (then they sold it)

Deutsche Telecom -> T-Mobile (and T-Home etc)

Telefonica -> Movistar

(the last two retain their names for the group, but the branding has been changed)

Also bear in mind that most incumbent telcos still own their fixed networks - so if Telecom are changing because they don't want to be seen as a network owner anymore, that logic wouldn't apply to almost all incumbent Telcos around the world.

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#1078447 2-Jul-2014 10:02

Lots of coroporations rebrand

International Business Machines----- IBM
General Motors Corporation---------- GM
Teal------------------------------------- Air New Zealand
BOAC............................................ British Airways

To name just a few. Rebranding gives the opportunity to renew and refresh, its not a bad thing.

old3eyes

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#1078536 2-Jul-2014 11:50

KiwiNZ: Lots of coroporations rebrand

International Business Machines----- IBM
General Motors Corporation---------- GM
Teal------------------------------------- Air New Zealand
BOAC............................................ British Airways

To name just a few. Rebranding gives the opportunity to renew and refresh, its not a bad thing.

But those names still mean the same thing. Most abbreviations. Spark in no way abbreviates the name Telecom NZ..

Bit of a long bow quoting TEAL as most people under 50 will have no idea what that was..

Regards,

Old3eyes

Stu

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#1078539 2-Jul-2014 11:58

Well actually, it demonstrates that rebranding isn't a new thing. It's been happening since, well, forever...

MikeB4

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#1078541 2-Jul-2014 11:59

old3eyes:
KiwiNZ: Lots of coroporations rebrand

International Business Machines----- IBM
General Motors Corporation---------- GM
Teal------------------------------------- Air New Zealand
BOAC............................................ British Airways

To name just a few. Rebranding gives the opportunity to renew and refresh, its not a bad thing.

But those names still mean the same thing. Most abbreviations. Spark in no way abbreviates the name Telecom NZ..

Bit of a long bow quoting TEAL as most people under 50 will have no idea what that was..

In 50 years how many will remember Telecom?

A more recent change was Datsun to Nissan

old3eyes

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#1078558 2-Jul-2014 12:30

KiwiNZ:
old3eyes:
KiwiNZ: Lots of coroporations rebrand

International Business Machines----- IBM
General Motors Corporation---------- GM
Teal------------------------------------- Air New Zealand
BOAC............................................ British Airways

To name just a few. Rebranding gives the opportunity to renew and refresh, its not a bad thing.

But those names still mean the same thing. Most abbreviations. Spark in no way abbreviates the name Telecom NZ..

Bit of a long bow quoting TEAL as most people under 50 will have no idea what that was..

In 50 years how many will remember Telecom?

A more recent change was Datsun to Nissan

Early 1980s..

Regards,

Old3eyes

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