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

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news