Telecom cancels Aussie CDMA plans

By Phil Boeyen, ShareChat Business News Editor

Thursday 3rd May 2001

Telecom is canning its CDMA rollout in Australia on which its subsidiary, AAPT, has already spent more than $150 million.

The cancellation should not come as a surprise as the network's future has been under a cloud since Telecom put a halt to the rollout late last year pending a review.

At the time Telecom said the review and suspension followed delays in the roll-out.

Now the explanation is not much clearer with executive, Mohan Jesudason, saying Telecom and Lucent have decided to close down the roll-out "in view of changes now occurring in the Australian mobile communications market."

Exactly where Telecom is headed in the Australian mobile market has remained uncertain since the company missed out on the mobile assets of Cable & Wireless Optus, which were purchased by SingTel.

There has been speculation the company may tie up with another mobile provider but nothing has yet been confirmed, with the Telecom only allowing that it has spoken to a number of telecommunications companies.

In the period up to the end of December AAPT had spent more than $150 million on the CDMA project but Telecom has not yet detailed the extent of any write-off.

Mr Jesudason says the amount will be known in due course and the company will make a disclosure then.

The decision does not affect Telecom's planned launch of a CDMA network in New Zealand, which the company hopes will give it a marketing edge over rival Vodafone.

Both Telecom and Lucent have been quick to point out that the cancellation of the Australian project has been amicable.

Phil Pryke, head of Lucent Technologies for Australia and New Zealand, says the two companies are continuing to work together on the CDMA rollout in New Zealand and are discussing other business opportunities.

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