KEY POINTS:
Telecom is keen to do deals in Australia with mobile phone network operators Hutchison and Vodafone in an attempt to make the most of customers using its fixed-line business.
Chief financial officer Marko Bogoievski yesterday made it clear it was in the interests of Vodafone and Hutchison to talk to Telecom because of difficult mobile-phone market conditions across the Tasman, The Sydney Morning Herald reported today.
"We know overall the market is looking at consolidations as far as mobile goes," Mr Bogoievski told analysts at a briefing in Sydney.
"There are a lot of mutual reasons to talk to each other."
Mr Bogoievski said Vodafone faced anything but a "fantastic outlook" while Hutchison needed more customers -- something Telecom believed it could provide given the number of fixed-line users at subsidiary AAPT and the soon-to-be acquired PowerTel.
Telecom holds almost 20 per cent of Hutchison, which was expected to reveal a recapitalisation within weeks in a bid to ease a debt burden that blew out to A$3.6 billion ($4.1 billion) as at the end of 2006.
Mr Bogoievski also warned analysts the market had underestimated the cost of Telecom's forced split into three divisions, as required by the Government.
Also yesterday it was reported Telecom may build a new hybrid cellular network, which would be the first of its kind in the world and cost between $700 million and $1.2 billion.
The Communications Day said that the Telecom board met last week to consider a strategy paper that recommended building a hybrid GSM and EVDO network that would support both main cellphone technologies, the high-speed UMTS and HSDPA services.
Telecom has been left as the sole provider of the CDMA cellular technology in Australasia, leaving its customers travelling to Australia without adequate roaming options.
Once the hybrid project started, the existing CDMA network would be shut down.
Telecom spokesperson Phil Love said it would not comment on the network build but said it was "looking at technology options, on behalf of our customers to make sure we future-proof them".
The company was happy with CDMA and with the rollout of the Revision A upgrade of the technology.
- NZPA
