Telecom share price tells sorry story for some

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June 19, 2009 

Telecom share price tells sorry story for competitors

“If you had any doubt as to whether the Comcom decision was good for Telecom, and bad for its competitors, just check out what the market reckons.”

This from Orcon CEO Scott Bartlett.

Telecom’s share price overnight rose 3.9 per cent to NZ$2.69 following the Commerce Commission’s broadband determination yesterday.

“What does that tell you?” Bartlett asks.

“While the price has come back a little this morning it’s still up around two per cent on the previous day’s close. That tells me investors like what the Commerce Commission said, and why wouldn’t they?.”

Bartlett quoted an ABN Ambro newsletter that yesterday reported that “the pricing in today's final determination from the Commerce Commission (covering sub-loop, co-location and backhaul) effectively rules out access competition at the cabinet...”.

“The decision is bad for New Zealand broadband consumers who are now priced out of the game,” Bartlett says.

“All of the improvements in broadband price, speed and service Kiwi consumers have benefited from during the past two years have been as a result of competition brought about by unbundling.”

ends

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