Telecom Considering Sale Of Subsidary

TELECOM CONSIDERING SALE OF ITS NETWORK DESIGN BUILD AND MAINTENANCE SUBSIDIARY

Interest from other companies in ConnecTel, Telecom’s standalone network design, build and maintenance subsidiary, has prompted Telecom to set up a formal process to consider offers for the operation, ConnecTel General Manager Ian Frame said today.

“We have had enquiries about purchasing ConnecTel from several companies which are or would like to be active in the network construction and maintenance business,” Mr Frame said. “This does not automatically mean ConnecTel will be sold. Given the interest it simply seemed sensible to formalise the process.”

Mr Frame said that a growing number of companies were entering the network servicing industry in New Zealand. “At least half a dozen companies are now competing for Telecom’s network design, build and maintenance business. Others in the industry are Telecom’s competitors and other “network” owners. The old days when Telecom itself was the sole source of telecommunications network expertise are long gone.

“Telecom has contracted out more and more of its design, build and maintenance work over the past few years. At the same time ConnecTel has been looking for and winning work from other network companies. Considering the sale of ConnecTel really is a logical step.”

Mr Frame said that he believed a sale could have significant benefits for ConnecTel and its staff. “It has the potential to open up more options for new business. Just as Telecom is moving to contract out its design, build and maintenance work, so too are other companies which currently own communications networks in New Zealand and offshore.”

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