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Agreement To Close Down CDMA Roll-Out In Australia

Telecom’s subsidiary AAPT and Lucent Technologies have agreed to close down the roll-out of a CDMA mobile network in Australia.

AAPT and Lucent said today that they would continue to have a close working relationship and are in discussions regarding future opportunities. The agreement reached provides the basis for an efficient winding up of the CDMA project.

Telecom General Manager, Mobile, Mohan Jesudason said the companies had decided to close down the roll-out in view of changes now occurring in the Australian mobile communications market.

“AAPT and Lucent undertook a comprehensive mutual review of the project since the agreement to suspend the roll-out was decided last December, and have now agreed to wind up the roll-out,” Mr Jesudason said.

“AAPT has spent in excess of A$125 million on the CDMA roll-out up until 31 December 2000, but the extent of any write-off will be known only in due course. Telecom will make an appropriate disclosure at that point,” Mr Jesudason said.

Mr Phil Pryke, Lucent Technologies Chief Executive for Australia and New Zealand, said, “We are continuing to work with Telecom on the CDMA roll-out in New Zealand. The project is clearly a milestone for both Telecom and Lucent.

Mr Pryke added, “We are currently in discussions with Telecom on other business opportunities, and continue to maintain a strong relationship”

Telecom’s CDMA network in New Zealand is scheduled for commercial launch in a few months time.

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