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Telecom Strenghens Esolutions Business Group

Telecom is forming a new business group which encompasses the existing esolutions and Advanced Solutions units.

The new, bigger group will continue its focus on providing online and communications solutions and services to larger business customers.

Telecom's Chief Operating Officer, Simon Moutter, said the changes would evolve the alliance formed in February 2000 by Telecom, Microsoft and EDS to create esolutions.

"Since its inception esolutions has provided sophisticated products to businesses with complex communication needs.

"The combining of esolutions and Advanced Solutions will allow Telecom to continue to do this and to access even more products from overseas with the aid of our global alliance partners, Microsoft and EDS," he said.

Mr Moutter said the changes will mean Telecom will get even more focussed on getting the most out of esolutions product development capability and the abilities of Advanced Solutions to deliver IT&T solutions.

Mr Moutter said the decision to form this new business unit was taken in line with recommendations from a strategy review completed earlier this year by McKinsey & Co which said Australasian telecommunications and technology companies could expect their combined gross profits to increase by more than a quarter in the next three years. The review said much of this growth would come from value-added IT&T services delivered to business customers.

"So what we are doing here is another example of how Telecom is continuing to position itself in key growth markets," said Mr Moutter.

The new group will be headed by Chris Quin, currently the General Manager of Telecom's Advanced Solutions Group.

Ends



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