Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Antitrust regulator clears Vodafone takeover of TelstraClear

Antitrust regulator signs off on Vodafone takeover of TelstraClear

Oct. 30 (BusinessDesk) - The Commerce Commission has given the green light to Vodafone New Zealand's $840 million takeover of TelstraClear, saying there isn't any significant business overlap between the two telecommunications carriers.

The antitrust regulator has cleared the purchase, saying the companies' provision of fixed-line and mobile services to large businesses didn't cross over, and that TelstraClear-parent, Telstra Corp, would keep some radio spectrum which could be bought by rival carriers.

"In reaching its decision, the commission considered that the merged entity would continue to face competition from Telecom, as well as Orcon, Slingshot and other smaller businesses in providing fixed-line voice and broadband services to residential and small business customers," chairman Mark Berry said in a statement.

Auckland-based Vodafone expects to reap savings through ending management and back-office double-ups, and by using TelstraClear's backhaul and transmission services, according to its notice seeking clearance. The merged company will also cut its reliance on Chorus, the dominant telecommunications infrastructure firm, for wholesale network access.

Vodafone, the country's biggest mobile phone operator, boosted annual profit 16 percent to $175 million in the 12 months ended March 31 from $151.5 million a year ago, even as revenue fell 4.3 percent to $1.62 billion.

That was better than what Vodafone foreshadowed last year when it said sales would fall $124 million and comprehensive income by $55 million due to the Commerce Commission imposing a reduction in mobile termination rates, the fees carriers charge each other for ending a call on a rival network.

TelstraClear lifted earnings before interest, tax, depreciation and amortisation climbed to A$99 million in the 12 months ended June 30, from A$84 million a year earlier. Sales fell 2.3 percent to A$502 million. Australian parent Telstra booked a A$130 million impairment charge against goodwill for the TelstraClear prior to the sale.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news