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TELSTRA and Hutchison Telecom abandon mobile merger talks
Sydney, Apr 20: Australian telecoms giant Telstra and rival domestic mobile phone operator Hutchison Telecommunications said today they had abandoned talks on merging elements of their cellphone businesses.
Sydney, Apr 20: Australian telecoms giant Telstra
and rival domestic mobile phone operator Hutchison
Telecommunications said today they had abandoned talks on
merging elements of their cellphone businesses.
Telstra Corp said the talks concluded in the past
few weeks but did not rule out a future deal between the two
operators.
"We did have some preliminary discussions with Hutchison," Telstra spokesman Rod Bruem said.
"It was around network sharing and wholesale opportunities and particularly CDMA (Code Division Multiple Access).
"I think the talks concluded in the past few weeks. But that doesn't mean to say that they won't reopen again."
Hutchison told the Australian Stock Exchange the companies had discussed the possible merger of their digital CDMA businesses and the sharing of Hutchison's third generation '3' network. The companies were responding to a report in the Australian newspaper, which said Telstra was considering buying Hutchison's Orange mobile phone business for about 250 million dollars (185 million US dollars).
The failed talks come as chief executive Ziggy Switkowski clings to his post following last week's shock resignation of chairman and Ally Bob Mansfield after a boardroom revolt.
The pair's strategic growth strategy is understood to have been at odds with the rest of the board after it rejected their proposal to take over local newspaper group Fairfax Holdings Ltd.
Bureau Report
"We did have some preliminary discussions with Hutchison," Telstra spokesman Rod Bruem said.
"It was around network sharing and wholesale opportunities and particularly CDMA (Code Division Multiple Access).
"I think the talks concluded in the past few weeks. But that doesn't mean to say that they won't reopen again."
Hutchison told the Australian Stock Exchange the companies had discussed the possible merger of their digital CDMA businesses and the sharing of Hutchison's third generation '3' network. The companies were responding to a report in the Australian newspaper, which said Telstra was considering buying Hutchison's Orange mobile phone business for about 250 million dollars (185 million US dollars).
The failed talks come as chief executive Ziggy Switkowski clings to his post following last week's shock resignation of chairman and Ally Bob Mansfield after a boardroom revolt.
The pair's strategic growth strategy is understood to have been at odds with the rest of the board after it rejected their proposal to take over local newspaper group Fairfax Holdings Ltd.
Bureau Report