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Kordia, Orcon integrate to become Kordia New Zealand

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Kordia Group, a New Zealand-based competitive business provider, on Friday integrated its two main telecom businesses, including Kordia Networks and Orcon, under one common brand—Kordia New Zealand.

Geoff Hunt, CEO of Kordia Group, said in a release that as it saw 27 percent growth in Orcon and 16 percent growth in Kordia Networks up through June 2012, the service provider has been examining the best options to grow the company as the country's telecom market continues to become more competitive.

What's driving changes in New Zealand's telecom market is Telecom New Zealand splitting up its retail and wholesale operations and, of course, the government's Ultra-Fast Broadband Initiative.

"Today's announcement positions us to be solutions-led, combining the fast, innovative style of Orcon with the network quality of Kordia," he said. "It will create New Zealand's most innovative and reliable provider of business-critical information services."

The integration of the two units will rid the company of duplicate network infrastructure and support staff, meaning that some staff will be laid off.

Since both Kordia and Orcon have been developing a set of business services, Hunt added that "the time is also right to rationalize the product set and present a simple, unified offering to this market." Orcon, however, will continue to provide services to SMBs and residential customers.

Scott Bartlett, Orcon's leader, will oversee Kordia New Zealand, which will have a turnover of $161 million and 320 staff, as CEO.

Kordia New Zealand will focus on four major segments: media (broadcast, content management and delivery), business services, specialized networks, and Internet services.

As part of the integration process, Kordia New Zealand will seek out feedback from current employees on various "recommended changes," including the outsourcing of Orcon's remaining 50 Auckland call center positions to New Zealand partner Datacom.

For more:
- see the release

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