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Econet Comments on Telecom Annual Result Web-Cast

Econet Comments on Telecom Annual Result Web-Cast – for telecommunications financial community

Econet Wireless New Zealand (Econet) today participated in the Telecom’s annual result web-cast.

Econet respects that Telecom’s annual result web-cast is supposed to be a forum for understanding the shareholder value of TCNZ, not debate regulatory issues.

However, Econet would like to clarify three issues mentioned in today’s webcast:

1) Econet believes the SAC of Vodafone NZ is an order of magnitude different from Telecom. We believe the 2004 Vodafone annual report and local research provides some guidance that Vodafone’s SAC is in fact positive, and around NZD $50 per customer, whilst Telecom’s is approximately NZD $450 per customer.

2) Econet applied to Telecom for co-locations on 52 cell sites over two months ago in the Auckland area and is waiting on a price response from Telecom.

3) Econet notes that the Telecommunication Carriers Forum has been debating a co-location code for nearly four years with no agreed code yet.


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