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Vocus, FX Networks: Telecomms consolidation goes regional
Juha Saarinen reports Vocus
in talks to buy NZ backbone provider FX Networks. He
writes:
Stock exchange-listed telco and internet provider Vocus is said to be eyeing up New Zealand national backbone operator FX Networks, in a deal worth over NZ$100 million (A$94 million), according to sources close to the discussions.
Other local sources close to the discussions confirm something is going on between the two firms.
Meanwhile the NBR's Chris Keall provides more evidence:
https://twitter.com/ChrisKeall/status/483433675552739328
Telecommunications consultant Jon Brewer tweets:
https://twitter.com/kiwibrew/status/483399919462391810
He is right about the deal being exciting. What we are seeing is a new twist to the consolidation that's been reshaping New Zealand's telecommunications sector since Telecom NZ first announced it would demerge its Chorus division to win government fibre contracts.
In fact there are two twists. First, we're seeing consolidation at the transit level. FX and Vocus run the long haul networks connecting cell towers, local fibre networks and exchanges to hubs. This will see economies of scale and greater buying power at this level.
The second twist is the regional nature of the deal. This comes not long after Telecom NZ finally pulled the plug on its Australian operations and following Telstra's withdrawal from New Zealand. Potentially the Vocus FX Networks tie up will create a single market across Australia and New Zealand — with all that implies. It will also create a new large-scale player in New Zealand.
Bill Bennett
New Zealand technology news
Bill Bennett publishes technology news and features that are directly relevant to New Zealand readers.
Covering enterprise and small business computing, start-ups, listed companies, the technology channel and devices. Bennett's main focus is on New Zealand innovation.
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