TeamTalk makes deal with Vodafone

Listed mobile radio company TeamTalk has signed a deal to resell Vodafone's services after giving up on a plan to build its own cellular network.

TeamTalk runs nationwide cellular-like networks for commercial and industrial users of walkie-talkie-type handsets, including transport companies, taxi firms, security guards and emergency services.

TeamTalk managing director David Ware said yesterday it had looked into building cellular towers but found that radio spectrum was "locked out".

"By the time we looked at it, the Government had already auctioned off all the frequencies to Telecom, Telstra, Vodafone and the Hauraki Trust - which was later used by Econet."

TeamTalk announced the wholesale deal with Vodafone yesterday, saying it would enable it to provide data services, including computer dispatch services, global positioning systems and engine monitoring.

Vodafone's chief executive Russell Stanners approached TeamTalk about tapping into the mobile radio market after discovering Vodafone did not have the right "understanding" of the market to do it alone, said Ware.

"It is a very specialised, niche service we offer," he said.

Ware said the mobile radio market would remain static in the future but would never be totally overtaken by cellular providers.

"You would never get a situation where the country has complete cellular coverage," he said.

Users such as emergency services, taxis and couriers still preferred the coverage and reliability of mobile radio.

TeamTalk previously reported a full-year net profit up 2.8 per cent to $3.11 million.

At the time, Ware anticipated next year would be more difficult as the economy tightened and uncertainty remained over the telecommunications regulatory environment.

TeamTalk was established in 1994 and is New Zealand's largest mobile radio company.

The company's share price reached a high of $2.90 at the end of July, after a low of $2.30 the month before.

TeamTalk shares closed at $2.50 yesterday.


TEAMTALK

* Mobile radio company with clients including taxi firms and courier companies

* Established in 1994

* Listed on the NZX in 2004