Telecom announces huge profit; says Yellow Pages dosh won't necessarily go toward better broadband
Telecom has just announced a bumper nine-month, after tax profit of $699 million. The press release accompanying its profit announcement includes confirmation that $1.1 billion of the $2.161 billion reaped from the Yellow Pages sale will be splurged on a share dividend. But don't expect the balance to necessarily go toward better, faster internet. Telecom Chairman Wayne Boyd says:
"Future investment in Telecom's broadband and mobile networks is not fundamentally linked to the return from the YPG [Yellow Pages Group] sale.
"Any further investment in broadband will be contingent on being able to obtain sufficient regulatory certainty and being able to earn a fair rate of return on that investment.
"Other relevant factors which have been taken into consideration include Telecom's earnings outlook, and the acquisition of PowerTel in Australia."
Translation: if the government goes easy on us, we'll see our way clear to investing some of the Yellow Pages dosh in broadband, and on this side of the Tasman.
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Comments
Instead of spending money on mobilephone companies over in aussie that keeping losing them millions!!, stupid advertising campaigns about bringing relatives from overseas or cute mobile animals, why not spend money on what really matters...your ageing infrastructure!!
Posted by: Gavin L | May 4, 2007 12:01 AM
Yeah. It was alright for telecom to spend and lose billions on the Aussie company AAPT, but when it comes to investing in its own home country on better broadband?
Oh no..can't do that!!
Posted by: George R | May 3, 2007 11:52 PM
Are you at all suprised at this? To hell with NZ we will help out the Ozzies get better everything. Why don't they just move their HQ to Sydney and be done with it.
Posted by: Paulw | May 3, 2007 1:53 PM