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Kordia bundles Orcon ISP with network business in slimmed down operations

Friday 26th October 2012

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Kordia, the state-owned communications group that returned to profit this year, has merged its Orcon internet services provider with its network business, slimming down group operations.

The merged entity will be called Kordia New Zealand and will be headed up by Orcon boss Scott Bartlett, Kordia said in a statement.

The new unit will focus on media, including broadcast and content management and delivery, advanced telecommunications services for businesses, specialised networks and internet services.

"The move will enable us to eliminate the increasing duplication of network infrastructure and associated support staff," group chief executive Geoff Hunt said.

"The time is also right to rationalise the product set and present a simple, unified offering to this market."

Kordia has had to focus on new revenue streams after the government decided to free up radio spectrum for newer mobile technology by axing analogue TV in favour of a digital signal.

That was initially scheduled for 2015, but was brought forward to kick off this year. The new unit will account for about 40 percent of Kordia's group revenue, with the remainder coming from its trans-Tasman Kordia Solutions businesses.

The merger will see Kordia cut staff numbers as part of the restructuring, singling out 50 call-centre positions in Auckland as likely to be outsourced to Datacom's Manila operation. A further nine redundancies are expected across the remainder of the business, it said.

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