Fears Vodafone takeover to cut competition

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Fears Vodafone takeover to cut competition

3News NZ

Speaking on The Nation today, Vodafone chief executive Russell Stanners says he doesn't think Vodafone and Telecom will squeeze out the smaller players

Speaking on The Nation today, Vodafone chief executive Russell Stanners says he doesn't think Vodafone and Telecom will squeeze out the smaller players

Vodafone is moving to calm fears that its big takeover will mean less choice in the telecommunications market.

It has just bought Telstra Clear for $840 million, netting it Telstra-Clear’s voice and data-based services, network infrastructure and New Zealand customer base.

Speaking on The Nation today, Vodafone chief executive Russell Stanners says he doesn't think Vodafone and Telecom will squeeze out the smaller players.

“It’s a very different market,” he says. “When you think about duopoly, that’s a headline of probably 10 years ago.

“It actually doesn’t really even work when you think about the structure of the market that the Government just created this last year.”

Mr Stanners says all the telecommunications companies have to buy into the same network infrastructure, which gives smaller companies a chance of competing.

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Comments

29/07/2012 10:44:20 a.m.

Steve wrote:

pretty ignorant and lazy comment from Chad, unfortunately. A look at todays market shows the fragmentation of broadband networks. This move will mean more robust competition. We are not going to see any real action till the deal goes through.

22/07/2012 4:10:57 p.m.

Chad wrote:

Basically, the NZ consumer is going to get shafted. Back to the good 'ol' days for Telecom & Vodafone - price how they want to, take it or leave it for the consumer. He said it himself, he doesn't believe in regulation.

15/07/2012 10:59:31 a.m.

Johnson wrote:

Good interview and good questions asked, well done to both the interviewer and Vodafone's CEO. Looking forward see what will happen in the next 6-18 months.