Will TCNZ And Telstra Follow BT's Lead?

A report from the New Zealand Commerce Commission (NZCC) criticises the competitive landscape in the country's telecoms market, saying that the 'market shares of incumbents remain high', particularly in comparison with markets such as Australia and the UK. However, BMI's own research indicates that the Telecom Corporation New Zealand (TCNZ)'s share of the fixed-line market in particular is not really that far ahead of Telstra in Australia. We believe that both the Antipodean incumbents may soon be heading down the route of network and retail operations separation, pioneered by BT in the UK, reflecting efforts by regulators to drive growth in their broadband markets.

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