Telecom prepared for market share slide

Telecom New Zealand says it is being realistic about potential losses of market share in the wake of regulatory changes which force it to offer its local loop networks to competitors. Dow Jones quotes Telecom’s chief financial officer Marko Bogoievski, who says: ‘Competition has always been the thing you’ve got to keep an eye on. We’re acutely aware of other competitors’ capabilities.’ Vodafone, Telecom’s sole rival in the country’s cellular market, has recently announced plans to enter the fixed line sector with its introduction of converged fixed-mobile options and it is also offering cellular data packages which are aimed at winning over Telecom’s wireline internet users. Bogoievski says the UK-owned firm is a ‘formidable’ competitor and the threat of competition should be taken seriously. He did not give details of how much market share Telecom is expecting to lose.