New Zealand Telecom to Merge Fixed-Line and Wireless Divisions

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New Zealand Telecom to Merge Fixed-Line and Wireless Divisions

2:04 pm on April 10, 2006 | Category: Business, Telecom Services, Telephone, Wireless, Corporate

New Zealand’s largest telephone provider, Telecom Corp., is reportedly planning to announced the merger its fixed line and wireless divisions, in preparation for the increased convergence of services.

According to a company spokesman, Telecom Corp. is planning to offer telephones that switch between fixed line and wireless networks by the end of 2007.

Without citing sources, the Dominion Post claims that the merger of the two Telecom divisions will take place sooner rather than later, and will likely be announced by the company by the end of this week.

Telecom has yet to comment on these reports, but there is no denying that a more converged business model would make sense, potentially making it easier to compete against wireless rival, Vodafone Group.

“This integrated structure fits the type of products they are going to be offering, moving forward,” said Forsyth Barr analyst, Jeremy Simpson, who has given Telecom’s stock an “accumulate” ranking. “Their key strength is that they can offer a full spectrum service.”