Telecom cuts a response to competition, says Telstra

Telstra has welcomed this week's announcement of price cuts on Telecom digital data services and has promised to stay competitive in the field - without exactly saying how. Meanwhile, Ihug has denied yet another Telstra buy-out rumour.

Telstra has welcomed this week's announcement of price cuts on Telecom digital data services and has promised to stay competitive in the field - without exactly saying how.

"We see [the Telecom cuts] not just as a reponse to price reductions in service delivery, but also as a result of increased competitive activity, says Telstra New Zealand product and marketing manager Sandra Wallace. "Price reduction is in line with Telecom's competitive strategy."

Telstra says it will remain competitively-priced with its data service offerings, and will continue to "seek ways to to deliver total business solutions, not just offering more bandwidth for less money."

Managing director Peter Williamson says the telecommunications environment is now "more about partnership and value-add, which is a philosophy Telstra is deeply committed to. The bottom line, not the toll bill, is what we are all about."

National operations manager Allan Collins says it is "interesting" that Telstra's increased activity in the New Zealand market is causing price revisions from "other players". He says Telstra will "await further responses as we upgrade our network nationally."

Meanwhile, Tim Wood, director of the Internet Group (Ihug) has cheerfully denied a rumour that the ISP has been bought by Telstra. It is not the first time that the two have been linked. Wood says he will be lunching with Telstra's Jerry Ostrowski next wekk, "so he have the chance the beg me then, if he wants."

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