Telecom's mobile radio to stay put

By Richard Braddell

WELLINGTON - It is business as usual for Telecom's mobile radio and paging business following the Commerce Commission's refusal to entertain its acquisition by competitor TeamTalk.

While the services offered by mobile radio and paging can be largely duplicated via cellular, differences such as the ability to send messages to multiple listeners such as taxi drivers, as well as cost and geographic cover separate the two.

Concerned that TeamTalk could acquire a dominant market position if it took over its only national competitor, the commission rejected its application.

"Some trunked mobile radio users are captive customers of this technology for functional and economic reasons," said commission chairman John Belgrave. "They would not be able to switch to other forms of mobile communications such as cellular."

Also, entry of new competitors was unlikely.

Telecom spokesman Clive Litt said there were no plans to change the business following the commission's rejection. He noted that while it was a small part of Telecom's activities, it was valuable to customers.

According to TeamTalk's application, Telecom had asked that the proposal be referred to the commission before detailed negotiations began.

Mr Litt said Telecom would entertain inquiries about some parts of its operations, and if someone else made a bid for the radio business, it would be assessed on its merits.