Newcall exits NZ in anger

Friday 8th June 2001

By Francis Till

Telecommunications company Newcall Group has sold off its assets here and announced it will no longer do telecommunications business in New Zealand, citing regulations that group managing director James Bracknell called "poppycock."

The company will continue to do telecommunications business in South East Asia.

In March, 2000, Newcall Group was one of only 10 companies (and the only New Zealand company) awarded a services-based operator licence by the Singapore government. The newly deregulated market there was then valued at more than $5 billion per year.

At that time, company director Norm Nicholls told reporters, "We are and will remain a New Zealand based telecommunications company. Our growth locally has been spectacular, with a 50% increase in revenues this year alone, and we are on target to meet our operational forecasts, achieving profitability before the end of the year."

NBR columnist Peter V O'Brien said (NBR, Mar 23), following Newcall's disastrous declaration that shareholder equity had been wiped out, "Newcall is a revamp of the former New Zealand Salmon Company and it seems, if the expression can be excused, the organisation is again struggling to get up stream."

The business customer base has gone to TelstraSaturn and the remainder to Clear. Regional ISP Iprolink has been sold to London-based PCL Internet International and is likely to be developed as a local merchant hub. Newcall will retain its New Zealand Energy Online operation, borrowing $1 million from the National Bank of New Zealand.

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