Cook Islands cash deal backfires for Telecom New Zealand
According to the TVNZ report, Telecom's 60 per cent owned subsidiary Telecom Cook Islands makes an NZ$8 million profit from just 12,000 users. That's NZ$667 per user, in a small Pacific Island nation with 15,000 or so people and a GDP of around NZ$8,000 per capita.
This revelation is highly embarrassing for Telecom and will inevitably lead to questions if similar deals are offered in other countries where Telecom operates... and has a monopoly.
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Comment by Jama, on 4-Apr-2006 13:03
Without a doubt Telecom have a good incentive. Would be similar to the situation of Vodafone in Fiji.
Don't forget also that the Cook Islands is famous for its dodgy tax dealings and business practices. Remember 'Wine Box'?
Comment by Wuppo, on 4-Apr-2006 18:12
Rarotonga has a GSM mobile network, but your Vodaphone is no good there. Guess why...
Comment by johnr, on 12-Jun-2006 11:19
Your GSM handset from Vodafone NZ will now roam in the cook islands
Comment by johnr, on 13-Jun-2006 09:03
Roaming to the cook Islands is possible with Vodafone NZ. Its on there website
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Comment by Jama, on 4-Apr-2006 12:27
Telecom Cook Islands is 40% owned by the Cook Islands Government and 60% by Telecom NZ. Therefore paying $4M to your business partner is hardly a bride. The government would have an incentive to retain the status quo because of its own equity ownership.
Tourism is the main industry in the Cooks so saying 'NZ$8M profit from just 12,000 users' is misleading. Obviously a big source of revenue for Telecom (and Cook Island government) is from tourists not locals.