Telstra To Launch MVNO In NZ

Written by Adam Gosling

Monday, 13 August 2007

Telstra has announced to the Australian Stock Exchange that an agreement has been reached with incumbent New Zealand telco, Telecom, to launch a third mobile phone network for the country. The agreement will enable Telstra's New Zealand subsidiary, TelstraClear, to provide a new nationwide mobile phone service without having to build a new network in the increasingly saturated market. Mobilised reported just last week that the New Zealand mobile phone market had reached saturation point with in excess of 100 per cent penetration. The introduction of a third carrier to the mix will considerably increase competitive pressure in the small market. Vodafone, which commands a 53 percent, but dwindling market share in the country will be competing against two massive companies both benefiting from the cost efficiencies of shared infrastructure. TelstraClear will launch its new mobile service later this year, with details provided closer to the time. The agreement will see TelstraClear launch its own TelstraClear mobile service later this year, providing a unique range of mobile services, bundles and prices via the Telecom network, said the statement. The agreement was signed this morning by Telecom acting CEO Simon Moutter and TelstraClear Chief Executive Dr Allan Freeth. Dr Freeth says the agreement is great for customers, enabling choice without the need to build a new mobile network. "Our customers can look forward to a unique TelstraClear service, with new TelstraClear branded handsets, bundles and pricing plans that are different to those offered by other players today," says Dr Freeth. "The fact that Telecom and TelstraClear can come to a commercial agreement like this is something that will really benefit customers, and quickly." Telecom acting CEO Simon Moutter says the agreement is also a positive move for the wider telecommunications industry. "This is an example of individual providers working together effectively to ensure best outcomes for customers," says Moutter. Last week Telstra announced that it had signed up more than 2 million subscribers to its 3G operations in Australia. New Zealand has a total population of just slightly more than 4 million. Telstra entered the Australian 3G market piggybacking on the Hutchison 3G network before launching it's own national NextG network to replace the aging CDMA network which will be decommissioned once the Australian Government is satisfied the new network provides coverage on a par in regional and rural areas. Telstra, which just announced very healthy profit results despite complaining it was being regulated out of existence by the ACCC, says the new network has helped it increase its 3G mobile base by more than 530 per cent in the year to 30 June 2007. One million of the two million 3G subscribers are on the new network, with the remained, presumably still being services via the Hutchison 3 network. Telstra said there are now more Next G subscribers than CDMA subscribers for the first time. Related news items Consumers Want FMC: Companies Don't See The Benefit -02/10/2007 Seven In Unwired Takeover Bid -26/09/2007 Major Players To Test WiMAX Interoperability -26/09/2007 Telstra Launches Another Coonan Attack -12/09/2007 Consumer Advice For Premium Mobile Services -03/09/2007 Newer news items Seven Wins Unwired -03/12/2007 SingTel's Mobile Subscribers Up 57% -06/11/2007 Skype, 3 Team Up For Mobile VoIP -29/10/2007 Sydney Airport Network Improved For APEC -03/09/2007 Telstra Offers $3 Million To Get Seniors Hooked on SMS -15/08/2007 Older news items Now Every Kiwi Has A Mobile, What Next? -08/08/2007 IDC Paints Picture Of Fierce Mobile Competition -11/07/2007 Who Next? Where Next? For Apple's iPhone -05/07/2007 Vodafone HSDPA Stretches To Brisbane -05/07/2007 Telstra Offers Pre-Paid On NextG -23/05/2007 Tag This Now: