Vodafone NZ will acquire TelstraClear's voice and data-based services, network infrastructure and New Zealand customer base. Telstra confirmed in early June that Vodafone NZ was looking at TelstraClear.
Telstra CEO, David Thodey, said: "Telstra will continue to service our trans-Tasman customers on a longer-term basis through a binding agreement with Vodafone New Zealand."
According to TelstraClear CEO, Allan Freeth, "The acquisition, if approved, will create a new force in the New Zealand market in readiness for the ultra-fast broadband roll out and will provide customers with a full suite of fixed and wireless telecommunications and data products."
The sale is contingent on the approval of the New Zealand Commerce Commission, the Ministry of Economic Development and the Overseas Investment Office. TelstraClear said approval was expected to take several months.
TelstraClear is New Zealand's second largest full-service telecommunications company, after Telecom NZ. It provides products and services to the business, government, wholesale and residential sectors.
The business has been going backward in recent times. For the year to 30 June 2011 Telstra reported TelstraClear revenues of $A514m, down from $A529m the previous year and EBIT contribution a negative $A28m, up from negative $A14m in FY2010.
According to a Telecom NZ presentation to investors last September, TelstraClear had 14 percent of the fixed voice market, 16 percent of fixed broadband and a negligible share of the mobile and ICT markets.
TelstraClear started life in 1990 as Clear Communications, the first (and only) major fixed line infrastructure based competitor to the newly privatised Telecom NZ in a newly deregulated market. However absent a telecoms regulatory regime designed to guarantee interconnect like Australia's it suffered a protracted battle to get interconnect. This dragged on for years and went all the way to the ultimate legal authority of the British Commonwealth - the Privy Council in London.
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