Analyst: Telstra Telecom takeover would benefit consumers

New Zealand consumers would win if Telstra manages to navigate through all the complexities of selling its New Zealand subsidiary TelstraClear to Vodafone so it can acquire Telecom, a telecommunications analyst said.

"I know that New Zealanders wouldn't like to hear this, but if New Zealand becomes another state of Telstra, that would make an enormous cost savings, 40 operations in New Zealand, and that would make, call it a new Telecom, owned by Telstra, far more competitive," telecom analyst Paul Budde, managing director of BuddeCom, said.

On the other hand, the news would not be nearly as good for Telecom's staff, approximately half of whom would be laid off in the transition, Budde said, predicting that the only way Telstra could achieve savings of 50 to 70 percent at Telecom over the next decade—"would translate directly into job cuts."

All this, of course, continues to be mere speculation until Telstra comments one way or another—something spokeswoman Nicole McKechnie declined to do.

For more:
 - see this story

Related articles:
Telstra talking to Vodafone about selling its TelstraClear subsidiary
Telstra finalizes "definitive agreements" to take part in government-led NBN

Suggested Articles

Nokia and VMware have expanded their partnership to include a lab to certify Nokia's VNFs on VMware's vCloud NFV platform.

Ribbon Communications announced on Thursday that it's merging with ECI Telecom Group, and that CEO Franklin (Fritz) W. Hobbs has departed the company.

Cisco CEO Chuck Robbins expects macro economic conditions, such as the trade war with China and unrest in Hong Kong, to curb the company's revenues.