Telstra’s withdrawal from the New Zealand market shows that scale and integration are needed to justify foreign network investments, according to Ovum. Telstra has exited a difficult position in New Zealand, while Vodafone is now a worthy rival to Telecom New Zealand in both mobile and fixed.
For Vodafone, its acquisition of TelstraClear is part of its ongoing global strategy to use fixed assets to support an integrated operation, especially in the enterprise segment.
“The market will become more rational following the sale of TelstraClear, with two large integrated and scaled operators, alongside smaller value-seeking players to keep competition alive and well,” said David Kennedy, Research Director at Ovum.
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