Synopsis
This report covers the financial results of Telecom Corporation of New Zealand (Telecom) from 2006 to the current financial year, as well as market trends and the future outlook for each operating division. There has been an underlying transition from traditional voice services to broadband, IT and data services, however growth in mobile revenue is continuing its downward spiral as the market saturates further.
This decreasing trend in mobile revenue is appearing to reverse in Q2 2009/10 as new subscribers are taking up recently released 3G 850MHz XT mobile network. Whether the numbers can be sustained will depend on the company’s ability to fix the problems besieging the XT network. In 2010 data and broadband are expected to be the main categories for market growth. Telecom’s overall revenue growth was negative in 2008/09, as the incumbent adjusts to a new and more competitive operating environment after undergoing operational separation.