Newcall hangs up on telco, net business

Telecommunications and electricity reseller Newcall Group is to quit its New Zealand telecommunications and internet businesses.

The company says it plans to sell most of its telecommunications customer base to Telstra-Saturn for an undisclosed sum - subject to Newcall shareholder approval.

The remaining customer base will be sold to another telco soon, said Newcall's chief operating officer, Guy Pierce.

Newcall would also look to sell off its internet service provider, Internet Prolink NZ, which it bought last January.

Without a telecommunications arm it would no longer make sense for the company to maintain an internet service provider, Mr Pierce said.

Newcall, a market minnow by telecommunications standards, said it had found it increasingly difficult to survive in the highly competitive telco market.

Mr Pierce said the company would switch its focus towards its remaining assets, including a billing system, a 75 per cent holding in electricity reseller Energy Online and a 100 per cent holding in Newcall Communications Singapore.

Shares in Newcall last traded at 9.5c.

- NZPA