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Telecom today announced it has sold its network design, build and maintenance subsidiary ConnecTel to the Downer Group Limited.
Telecom’s Network Group General Manager David Bedford said that Telecom was pleased with the sale to the Downer Group, which in New Zealand operates through its divisions: Downer Construction, Works Infrastructure (previously Works Civil Construction) and Century Resources (Century Drilling).
“We had enquiries from several companies about purchasing ConnecTel. There is a growing number of New Zealand and Australian companies entering the network servicing industry and the telecommunications sector generally. The days are long past when Telecom was the sole provider of telecommunications network expertise.
“Many other telecommunications companies already use outside contractors and it is no longer necessary for Telecom to own a contractor in order to guarantee the quality of its service. As a telecommunication company, we look forward to continuing to work closely with ConnecTel which has won a significant number of Telecom’s design, build and maintenance contracts in a competitive tendering process,” Mr Bedford said.
ConnecTel General Manager Ian Frame said that he believed the sale would have significant benefits for ConnecTel and its staff.
“This sale has the potential for new business options for ConnecTel. Just as Telecom has moved to contract out its design, build and maintenance work, so too are other companies which currently own communications networks in New Zealand and offshore,” Mr Frame said.
Mr Bedford said the sale price reflected fair value of the asset and goodwill associated with ConnecTel.
Change of ownership will take place on 1 June 2000.
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