Vodafone updates TelstraClear takeover, outlines savings
By Paul McBeth
Sept. 6 (BusinessDesk) - Vodafone New Zealand, the country's biggest mobile phone operator, has outlined where it
expects cost savings in its $840 million acquisition of Telstra Corp's local unit in an updated notice to the anti-trust
The Auckland-based phone company is pinning its expectations on customers benefitting from the savings it can make
through ending management and back-office double-ups, according to a revised public version of its notice seeking
clearance to buy TelstraClear. The Commerce Commission expects to make a decision on whether to approve the deal
Vodafone said it will achieve savings by using TelstraClear's backhaul and transmission services, without publishing
how, and will also cut its reliance on Chorus, the dominant telecommunications infrastructure firm, for wholesale
The merger "overlays TelstraClear's network and UCLL (unbundled copper local loop) footprint, thereby improving margin
as Vodafone will be able to move from acquiring wholesale access to UCLL access or TelstraClear's cable network," the
The latest version also flags savings related to wireless spectrum, without offering more detail.
Vodafone had previously blanked out the efficiencies from the public version of its notice.
If the deal isn't approved, Telstra will retain ownership of TelstraClear, the updated notice said in a largely purged
counterfactual to the deal going ahead.