9th June 2005
Hautaki says New Zealanders paying too much for mobile phone calls Statement by Hautaki Limited
Hautaki Limited, a 30% shareholder of Econet Wireless New Zealand Limited (Econet) has welcomed the release by the
Commerce Commission on its mobile termination declaration and Argo TMC’s report into the competitiveness of New Zealand
mobile phone services.
Bill Osborne, Chairman of Hautaki Limited, said “It is good to see that the Commerce Commission now concluding that New
Zealanders are paying too much for mobile phone calls.
As investors, we would like to see an OECD-style regulatory environment so that we know our investment is not at risk
from the power that the incumbents have built up through years of limited competition. Appropriate telecommunications
regulation increases competition which increases price pressure. This is the case everywhere in the OECD, but it has
never happened here in New Zealand.”
Hautaki Limited is continuing to support the entry by Econet Wireless into the marketplace. Mr. Osborne said “We’re
confident that our investment will be a great strategic asset for Maori into the future, so long as the
Telecommunications Commissioner follows normal OECD practice.”
Hautaki Limited is in a sound financial position with a 30% stake in Econet Wireless and our equity investment is
secured. We confirm that good progress is being made albeit at a slower pace than originally anticipated. Now that
Econet Wireless has successfully completed major capital raising we look forward to seeing further development of the
network.
Hautaki remains confident that there is a strong business case for four players in New Zealand. Mr. Osborne said “We
have no doubt that the joint venture with Econet Wireless will bear fruit, for Hautaki Limited and New Zealanders.
ENDS