AAPT revenues plummet

Stuart Corner
Monday, 16 February 2009 02:04

IT Industry - Market

AAPT's customer segments are Wholesale, Business Solutions and Consumer. Wholesale focuses on 'on-net' data and Internet sales and securing key clients to reduce overall exposure to declines from the traditional calling business. The Business Solutions operation is also focused on selling 'on-net' products (especially data and Internet) to a more narrowly defined market segment.

The Consumer operation has recommenced marketing initiatives, is transitioning to an offshore call centre in Manila (see below) as well as adjusting prices to address unprofitable customers. AAPT is continuing the long running and well behind schedule migration of retail customers to Hyperbaric, its new multimillion dollar customer management and billing system, with a view to longer-term growth in the consumer market.

Specific cost savings from these initiatives were not given, but Telecom said a reduction of 'other' operating expenses by $A21m to $A78 million had been "driven by savings in outsourcing through the transition to an offshore call centre in Manila and no longer incurring Hyperbaric launch related costs."

Further cost reductions were also achieved during H1 FY09 due to reduced restructuring costs and bringing network maintenance in-house.

AAPT to move 350 call centre staff offshore
While Telecom New Zealand has had reservations about a large scale move to offshore call centre services, that has not deterred it from a similar move at its Australian subsidiary, AAPT where 350 call centre positions will move to Manila in the next six months, Telecom NZ says. It has given no other details of the move.

After a year-long trial of offshore call centre services in Manila, Telecom NZ earlier this month decided to retain the bulk of its call centre operations and staff in New Zealand (ExD 5th Feb*). However almost 300 positions will move offshore, mainly those providing support to broadband customers. These are in addition to the AAPT positions moving offshore.