KEY POINTS:
Telecom's results for the first quarter of its financial year have it holding steady in terms of earnings at $225 million - the exact same result as the same period last year.
But some of the underlying figures show the impact the pre-unbundling marketing and product drives of Telecom's competitors as they prepare for the opening up of Telecom's network to them.
Telecom is in negative territory in areas of its key business. Total calling revenue was $225 million, a decline of a whopping $225 million, while national call revenue was $124 million, down 9.5 per cent.
Residential access lines dropped 9,000 to 1,402,000. International revenue and other revenue is also down significantly, while mobile, typically a strong area for Telecom is also sluggish.
While customers are looking for alternatives, Telecom is also having to cut prices to stay competitive and the effect is being felt on the company's revenue lines.
As Telecom acknowledges: The decline in access revenue reflects the migration of customers from retail to wholesale and also customers using other technologies, including mobile, while competitors are continuing to build relationships with customers ahead of new regulated services."
The most aggressive company going after consumers in the run-up to unbundling is Vodafone, followed by Orcon and TelstraClear.
This land grab for subscribers will only continue next year and its unclear yet who exactly will be the ultimate winner in taking the lion's share of Telecom defectors.
