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Thread ID: 66682 2006-03-04 01:43:00 Telecom Breakup? Winston001 (3612) PC World Chat
Post ID Timestamp Content User
435315 2006-03-04 01:43:00 Some of you may have noticed that Telecoms share price has fallen out of bed . Today $5 . 27 - 6 months ago it was at $6 . 14 .

Why is this? Well one reason is overseas shareholders getting out before the $NZ drops any further .

But another reason is that apparently some government officials (Commerce Commission?) have been approaching the big fund managers . They have asked what their response would be to Telecom being broken up . This has scared people into selling up .

I cannot find anything but the financial commentator Rod Oram has allegedly discovered this backroom discussion .

So the conclusion is that the Government are intending to split up Telecom . Logically this will be into Xtra, Lines, and Calls .

Just as a pointer to the consequences, when the government separated out lines companies from electricity generators, the price of electricity dropped - yeah right . :rolleyes: :rolleyes:

Interesting times . :D
Winston001 (3612)
435316 2006-03-04 01:56:00 So the conclusion is that the Government are intending to split up Telecom. Logically this will be into Xtra, Lines, and Calls.
Three companies means 3 overpaid CEOs, 3 bureaucracies, 3 opportunities for corporate bloat, 3 opportunities for corporate greed, and 3 opportunities for price rises to cover "increased costs".

Much better the Govt legislates Telecom into compliance with their wishes and encourages them to retain their current management structure to minimise costs to consumers, or else.

Exactly what "or else" could mean I have no idea.

Cheers

Billy 8-{)
Billy T (70)
435317 2006-03-04 01:57:00 I haven't seen anything on sharechat yet (not that I look that hard) but an interesting concept Winston. As you say a good comparison would be the electricity industry and what we now have is many layers of administration and fees with little, if any, new investment within that sector. I wouldn't call the share price "low" - I was told I was mad when buying in the mid $4 price range. However it does raise an interesting point. Where is the separation between Government and private enterprise? Consider also this used to be an SOE in the days of the Post Office so I suspect they are a mere shadow of their former monopolistic self, plus they face an increasingly competitive market place. So in my uninformed but personal opinion, it is merely either a) conjecture or b) enquiries from low level self-important third term ministry hacks that will come to nothing. But I could be wrong......
A
andrew93 (249)
435318 2006-03-04 03:51:00 My mate Gareth has thing or two to say about Telecom.

articles.garethmorgan.com
Cicero (40)
435319 2006-03-04 04:16:00 My mate Gareth has thing or two to say about Telecom.

articles.garethmorgan.com

..........or, heaven forbid, re-nationalise it..............

I've noticed for some time now that your mate Gareth is beginning to get the right idea.............. :) ;)
Terry Porritt (14)
435320 2006-03-04 05:43:00 ..........or, heaven forbid, re-nationalise it..............

I've noticed for some time now that your mate Gareth is beginning to get the right idea.............. :) ;)
Have a look at this ......


www.nzcpd.com
Cicero (40)
435321 2006-03-04 05:52:00 Oh no not again.

Terry Porritt's right!
mark c (247)
435322 2006-03-04 06:43:00 Have a look at this ......


www.nzcpd.com

Ok, but look at the other side of the coin, I could go on and on about Sweden, but to save everyone the agony, I'll just say Nazi Germany:

www.suomalaisuudenliitto.fi free trade and all that of course, earned them much krona, and set them up for the post war era.

www.adl.org
Terry Porritt (14)
435323 2006-03-04 06:56:00 Of course I'm not saying that all is bad about Sweden, they gave the world Greta Garbo and Olaf Palmgren. Who is Olaf Palmgren you say, well he worked for SKF, the worlds greatest ball bearing manufacturers, and he was the one who first derived ball bearing stress and fatigue life theory :) Terry Porritt (14)
435324 2006-03-04 07:15:00 YaY for Olaf! mark c (247)
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