WELLINGTON/SYDNEY, May 18: British mobile phone giant Vodafone Group on Friday said it had no plans to sell its New Zealand and Australian businesses, following earlier media speculation.
New Zealand's National Business Review reported that Vodafone, the largest mobile phone operator in New Zealand, was looking to exit the market amid a tighter regulatory environment. The report cited an unnamed industry source.
''It's not implausible, there's constant exploration by companies of their strategic options,'' said an analyst, who did want to be named.'' The story gave no reason for Vodafone wanting to exit Australia other than the company was struggling to establish its market position in the region.
''Vodafone has absolutely no intention of selling its Australian or New Zealand operations,'' said John Casey, chief marketing officer for Vodafone Australia.
Potential buyers included Australia's top two phone operators, Telstra and SingTel's Optus, the paper said.
The analyst said Singtel was more likely to be interested, as adding Vodafone's Australian customers to its own base would give it around 50 percent share of the mobile market there, leap-frogging Telstra on 45 percent.
Last October, New Zealand's competition regulator launched an inquiry into whether the country's two mobile operators, Vodafone and Telecom Corp. Ltd., should be forced to give rivals access to their networks and open up their sites for rivals to install their own equipment.
The investigation is part of a regulator move to encourage competition and bring about lower prices to consumers.
In response, Vodafone in January offered to let other telephone companies connect to its network at a fixed price.
The cost of using a cellphone in New Zealand is among the highest in OECD countries. A separate inquiry is also underway into why no new companies have set up mobile networks in New Zealand.
Telstra's New Zealand division, TelstraClear, last month scrapped plans to build a NZ$50 million ($36.5 million) mobile network in one region.
($1=NZ$1.37)
REUTERS
New Zealand's National Business Review reported that Vodafone, the largest mobile phone operator in New Zealand, was looking to exit the market amid a tighter regulatory environment. The report cited an unnamed industry source.
''It's not implausible, there's constant exploration by companies of their strategic options,'' said an analyst, who did want to be named.'' The story gave no reason for Vodafone wanting to exit Australia other than the company was struggling to establish its market position in the region.
''Vodafone has absolutely no intention of selling its Australian or New Zealand operations,'' said John Casey, chief marketing officer for Vodafone Australia.
Potential buyers included Australia's top two phone operators, Telstra
The analyst said Singtel was more likely to be interested, as adding Vodafone's Australian customers to its own base would give it around 50 percent share of the mobile market there, leap-frogging Telstra on 45 percent.
Last October, New Zealand's competition regulator launched an inquiry into whether the country's two mobile operators, Vodafone and Telecom Corp. Ltd.
The investigation is part of a regulator move to encourage competition and bring about lower prices to consumers.
In response, Vodafone in January offered to let other telephone companies connect to its network at a fixed price.
The cost of using a cellphone in New Zealand is among the highest in OECD countries. A separate inquiry is also underway into why no new companies have set up mobile networks in New Zealand.
Telstra's New Zealand division, TelstraClear, last month scrapped plans to build a NZ$50 million ($36.5 million) mobile network in one region.
($1=NZ$1.37)
REUTERS
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