Netway to hand over frame relay, Pacnet management

Netway Communications is to hive off the management of Telecom's frame relay and Pacnet services to Telecom's Network Services Organisation.

Over the next 12 months Netway Communications will hive off the management of Telecom's frame relay and Pacnet services to Telecom's Network Services Organisation.

"We currently manage them for Telecom but they are branded as Telecom services," says Netway managing director Richard Taylor. “In future, they will be more associated with Networks."

He says that when Netway first took on the management, the services were small. "But they're now one of the fastest growing areas, more appropriate to Networks. And it's appropriate for us to focus on providing added value."

Focus, he says, is what the change is all about.

"Netway is positioned as a communications outsourcer and applications provider, aimed at the larger corporates.

"The expectation is that we will now obtain those services from Networks. But it will be transparent to our customers."

He says there are a number of complex commercial arrangements between the two parties, but he won't elaborate.

"We're going through the issues of what it means. The expectation is that as we release some capabilities, we'll apply those people in other areas."

No jobs will go, he says.

"We've been working down this track for the past 15 months and I anticipate we'll achieve a series of milestones over the next 12 months."

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