27 Aug 2012

Telecom to focus on broadband and data revenues

6:55 am on 27 August 2012

Telecom plans to focus on boosting its broadband and data revenues, as customers make fewer calls on their mobile phones and landlines.

Telecom shares fell heavily on Friday, after the company's full year profits came in slightly under expectations, amid mobile customer losses and lower calling revenues.

But acting chief executive Chris Quinn said Telecom is investing heavily in broadband, fibre and data products, which it says has more growth potential.

He said people are using broadband more broadly than in the past, including downloading more content, communicating using video services and storing information in the cloud.

Mr Quinn said that brings a demand for greater broadband speed and capacity.

He said that is an opportunity for future growth and Telecom's broadband revenue lifted by 7% in the half, which is an indication people are using it for more things.

Mr Quinn said Telecom will have its fibre services ready by early next year.

He said Telecom's ultra fast broadband products will be priced the same as current broadband products, but offer more value for money.

New chief executive

Meanwhile, Telecom's new chief executive won't reveal his plans for the company until early next year.

Simon Moutter, who starts his third week at Telecom, said he's focused on getting to know the business and understanding what customers want, while he draws up what he says will be an ambitious strategic plan.