Telecom New Zealand

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Template:Infobox Company

Telecom New Zealand Template:Nyse is a Auckland-based telephone company formed by after the privatisation of the New Zealand Post Office in 1990 and is also New Zealand's second largest mobile operator. Telecom is the largest company by value on the New Zealand Exchange (NZX) and movements in its share price have a great influence on the index of movements in the top forty companies.

Telecom was formed in 1987 from a division of the New Zealand Post Office and privatised in 1990. The selling price is considered by many to be extremely low, given that Telecom had a monopoly of all phone lines in New Zealand at the time. Others consider that the capital requirements to modernise the network were better provided by private enterprise than the government.




  • The New Zealand Post Office divests itself of the newly created Telecom which was created as a State Owned Enterprise (SOE) on March 31st.
  • The Government-owned Telecom Corporation is to have a commercial focus. It purchases the assets of the old Post Office for $3.2 billion and work begins on improving the services and network.
  • Telecom launches its 025 mobile network and CDPD mobile data network The New Zealand telecommunications market is progressively deregulated.




  • Telecom implements a NZ$200 million dollar fibre optic cable connection, between Australia and New Zealand.



  • Clear Communications (now known as TelstraClear reach an agreement on local service interconnection.



  • Saturn Communications Limited (now known as TelstraClear) enters the residential phone market in Wellington.
  • Telecom buys back NZ$1 million of its shares.


  • Ameritech sells down its 24.8% shareholding in an international public offering.
  • Bell Atlantic issues exchangeable notes that are convertible into the Telecom shares that it owns.
  • Telecom celebrates 500,000 mobile customers connected to its mobile network.
  • Southern Cross Cables Limited, half owned by Telecom, announces plans to build a fibre optic cable linking New Zealand with Australia and North America.
  • Vodafone New Zealand buys BellSouth and starts a campaign to attract Telecom customers to their network.


  • Telecom establishes a presence in Australia, buying 78% of AAPT, Australia's third largest telecommuncation company.
  • Telecom upgrades its nationwide payphone network to smart card technology.
  • Telecom's fast Internet service based on ADSL technology, called JetStream, is launched and rolled-out progressively in local exchanges.
  • Telstra merges New Zealand operations with Saturn to form TelstraSaturn Limited.


  • Xtra signs up it's 300,000th customer.
  • Telecom Mobile, the mobile division of Telecom celebrates 1,000,000 customers connected to its mobile network.
  • The New Zealand Government conducts a comprehensive review of the regulatory regime.
  • Telecom raises its AAPT shareholding to 100 percent.


  • The Government passes the Telecommuncations Act, setting up a Telecommunications Commissioner.
  • TelstraSaturn buys Clear Communications to form TelstraClear.

Effects of monopoly

The New Zealand Treasury has estimated the economic loss from Telecom's monopoly to be in the region of $50–$250 million a year. Another study commissioned in 1998 by rival company Clear (now TelstraClear) estimated that the loss was $400 million a year.

Telecom Mobile

Telecom Mobile is New Zealand's second largest mobile operator, with about 49.5% market-share, behind Vodafone. Telecom operates AMPS, Digital D-AMPS/TDMA and CDMA mobile phone systems in New Zealand. AMPS and D-AMPS service is sold under the 025 brand and CDMA services are sold under the 027 brand. Telecom is currently phasing out the older 025 network. Most of their customers have migrated over to the 027 network. Telecom is set to turn off the 025 network in 2007.

Customer numbers and market share

The following is customer numbers and market share information for Telecom Mobile, which includes both 025 and 027 customers. Since Vodafone took over BellSouth in the late 1990's Telecom's market share has dropped every year.

QuarterNo of customersMarket share %
December 1999858,00068.37%
December 20001,150,00060.43%
December 20011,379,00056.94%
December 20021,229,00050.18%
December 20031,298,00049.95%
March 20051,520,000 (approx)44.6%

Recent information shows Telecom to have 1.5 million customers - against Vodafone's 1.9 million customers.

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