Telecom shortlists three for outsourcing plan

By RICHARD BRADDELL ultilities writer

Telecom has shortlisted Alcatel, Lucent Technologies and NEC as possible partners in outsourcing its transtasman network infrastructure management.

Group general manager of networks Simon Moutter said a range of possibilities was being considered, from rationalising Telecom's multitude of equipment suppliers under the management of one vendor, to complete outsourcing of network management.

Even selling the networks has not been excluded.

"It [the project] would certainly look at alternative financial engineering or network ownership arrangements, not necessarily linked to the vendor, possibly involving third parties," Mr Moutter said.

But any deliberations about network management and ownership would run entirely separately from Telecom's present consideration of its rural network ownership.

The rural decisions would be out of the way well before the transformation project was completed and in no circumstances would Telecom lose control of its core business to an external party.

An arrangement involving all three suppliers, just one, or even a different set-up could transpire, Mr Moutter said.

"These three [Alcatel, Lucent and NEC] have shown us that they are prepared to work with us in a new way, and we will now spend some months figuring out what the possibilities are and which ones create the most value."

Telecom is no stranger to outsourcing, having already contracted out the operation of its call centres to Sitel, its information technology to EDS and the bulk of network build and maintenance activities.

About 1500 staff are still employed in networks.