Telecom sidelined in Optus game

A report in the Sydney Morning Herald is claiming that Singapore Telecommunications has cemented its position as the favourite to take the company.

The paper claims SingTel has won the support of the independent directors of C&W Optus, and a recommendation on the sale could come as early as next week.

Although mobile giant Vodafone is also keen to acquire the mobile assets of the telco, its bid has always faced regulatory pressure because it already has a sizable chunk of the Australian mobile market.

Telecom New Zealand also faced some competition concerns because of its ownership of AAPT, but the main stumbling block for the telco lightweight is believed to have been funding.

Last week the paper reported that Telecom CEO, Theresa Gattung, had indicated to analysts that the company would not be interested in buying any other Australian mobile assets if it failed to buy C&W Optus.

However it claimed Telecom would still be interested in buying other parts of the company, but did not specify if it would be the pay TV, internet, local or long distance calls business.

Telecom today launched a new set of services for New Zealand customers that bundle together pay TV, internet and local line rental.

The move is aimed partly at stopping the expansion of TelstraSaturn, which is also offering similar packages in Wellington and parts of Christchurch.

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