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

The data center sector is on track for another record year for mergers and acquisitions, according to Synergy Research Group.

VMware announced on Friday that it's buying privately held Veriflow to beef up its pervasive network monitoring and troubleshooting capabilities.

Cisco has axed 488 employees, according to a filing with the State of California.