If the latest rumours are true, the prospects for telecommunications competition in NZ are about to evaporate. There are rumours that Vodafone in NZ are in talks to buy-out Telstraclear, the NZ subsidiary of Australia's Telstra. Telstraclear has in recent times been offering the most competitive telco packages, so it strikes me as probable that Vodafone will be looking to unhinge its competitor before it poses a risk to its margins. NZ is of course a stagnant market; so its understandable why Telstra is leaving. The question is why they ever entered the market in the first place....if not just to 'extort' a buy-out from one of the majors by selling its customer base. Entering the market at the very least would have given it a better understanding of the market and its competitors.
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