KEY POINTS:
Telecom New Zealand has taken the upper hand in negotiations enabling TelstraClear's return to the mobile phone business market.
TelstraClear announced this week it had signed a deal with Telecom to access its CDMA mobile phone network.
The deal ends a nine-month hiatus since TelstraClear ended a more restrictive relationship with Vodafone.
And it allows TelstraClear to again offer a full service to business customers.
As part of the deal TelstraClear will be able to market three models of "World Access" handpiece used by Telecom.
These phones will allow "roaming" so TelstraClear customers can use phones while overseas.
But the CDMA deal is only part of TelstraClear's mission to re-establish its mobile service.
TelstraClear is now negotiating for access to Telecom's new generation mobile phone network using WCDMA technology, which allows broadband.
Telecom has itself not moved to WCDMA yet but it is expected to start marketing the new phones - matching Vodafone's new generation phones - from November this year.
Telecom has committed to keeping its CDMA network running until 2013 but chief executive Paul Reynolds has described CDMA as a "cul-de-sac" technology.
It has come to the end of its life with no prospects for improving revenue. In Australia, TelstraClear's parent company Telstra will turn off its CDMA network on Monday.
Apart from some parts of the US, Telecom New Zealand is one of the few remaining markets that use CDMA.
Telecom mobile marketing after the launch around November will be largely focused on moving people from CDMA to WCDMA.
Telecom will have a clear advantage negotiating the terms of TelstraClear accessing WCDMA.
TelstraClear fell out last year with Vodafone and needs to access Telecom's network. The deal makes sense given that TelstraClear does not want to spend the resources to develop its own network.
The absence of a mobile service for business customers was a problem for TelstraClear marketing itself as a full service network. But while TelstraClear had no mobile service whatsoever it faced serious risk of being shut out of the mobile sector altogether.
Telecom is confident that an extensive communications campaign will mean its mobile customers are aware of changes to mobile roaming in Australia after Telstra closes its CDMA network next week.
Telecom's general manager of mobile, Martin Butler, said the communications campaign combined with the launch of Telecom's WorldMode Global Roaming service means that customers should be aware of the options open to them.
Once WCDMA is up an running in New Zealand customers in Australia will be able to use roaming capabilities for its new phones accessing the Telstra WCDMA network.
MOUTTER IN NEW ROLE
Telecom executive Simon Moutter has been appointed to the new role of chief transformation officer for the company, which is undergoing a Government-ordered restructure.
Moutter was most recently Telecom's chief operating officer.
"The creation of this new role on Telecom's executive team of chief transformation officer is reflective of the sheer size and scope of the transformation ahead for Telecom New Zealand," said Telecom chief executive Paul Reynolds.
"We need to deliver our regulatory undertakings and build a series of new, world class networks and services."
This month, the Government approved a plan breaking Telecom into three separate divisions - network, wholesale, and retail operations.
Telecom also announced yesterday that Chris Quin had been appointed chief executive of the company's information and communication technology business, Gen-i.
- NZPA
