Telecom contractor squeezed

By RICHARD BRADDELL

WELLINGTON - Telecom's network installation and maintenance company ConnecTel is left with around 40 per cent of Telecom's business after a just-completed competitive tender.

The successful bidders in a North Island tender were notified yesterday. The round followed a South Island tender completed with little fanfare before Christmas.

The tenders are consistent with Telecom's policy of making ConnecTel's operations contestable.

"This is a tendering process in a particularly competitive industry where our priority is the needs of the customer," Telecom spokeswoman Lisa-Marie Richan said.

Financial details and likely cost savings have not been revealed. But Ms Richan said ConnecTel still remained twice the size of the next largest tenderer, Alstom.

ConnecTel, a Telecom subsidiary, has around 1100 staff, although the number affected is uncertain.

However, Ms Richan said the staff were highly skilled and a consultation process would result in some transferring to other parts of Telecom or to the new contractors.

Others had been with Telecom for many years and might be in line for substantial redundancy packages.

ConnecTel retained business in Manawatu, Wairarapa, Tauranga West, Waikato West (including west Hamilton) and Wellington City.

Alstom won contracts in Gisborne, Porirua, the eastern half of Hamilton, and areas including Cambridge, Matamata, Morrinsville, and Wanganui.

GDC Communications took south Auckland, Hawkes Bay and Taranaki, Bridge Communications gained the Hutt Valley, Dynamic took Horowhenua and MJTC won Rotorua and Tauranga.

Contracts run for three years with a two-year renewal thereafter.