This report includes an extensive collection of analyses on Telecom Corporation of New Zealand and the challenges that lie ahead for the nation’s incumbent telecom operator and service provider, as the telecommunications market undergoes massive changes as it moves towards 2009 Telecom is certainly going to face a couple of very tough years. It needs to implement long term structural changes, as well as make available new wholesale products over the short term, and at the same time set out its new direction for the future. From overseas activities, we have seen that such transitions are a costly exercise for the incumbent and most of the telcos going through such transitions see profit slumps of up to 50%., and by mid 2008 there was already evidence that Telecom’s profits and revenues had dropped substantially. But if the transition is executed well, then the company will be able to generate new and interesting revenues and profits from what we call value added infrastructure services. For more information on Telecom, see separate report: Telecom Corporation New Zealand - Company Overview.
