One.Tel demise to spark telco consolidation

The industry has already seen AAPT join forces with Telecom NZ and Hutchison Telecommunications (Australia) join forces with its parent company Hutchison Whampoa and Telecom NZ to launch its third-generation wireless (3G) services.

Geoff Johnson, research area director, enterprise network strategies for Gartner Asia Pacific, said One.Tel was always on the map for consolidation.

However, any plans to save the company now seem slim following the administrators Ferrier Hodgson's announcement that One.Tel has 21 days to find buyers for its businesses, or close.

The administrator said it had concluded that One.Tel owes $600 million and could not survive in its present state.

Peter Lemon, senior analyst, Internet services and communications for IDC, said he thought Hutchison would have made a move to buy One.Tel.

"I thought it would have been a discussion point at least, but this has probably stalled due to Optus and Telstra grabbing all the customers. Also [One.Tel] has the wrong sort of customers for what they are trying to achieve and it is probably the wrong time for them."

Joel Martin, research manager for IDC, said to survive, the telco would have to become a different company and go back to specialising in the international call area.

Martin said he believes One.Tel's plummet will bring on a consolidation within the industry, with carriers reduced by half.

"One.Tel was just the first cab off the rank. There are a lot of wholesale carriers in the market and I believe they will be next."

"They should be looking at where their revenue is coming from and who they can partner with."

Martin said he believed some interesting partnerships will come up, but he was not at liberty to discuss them as yet.

Despite One.Tel's failure in the marketplace, Martin believes the company has given a lot back to the public.

"Their initiatives were very beneficial to the market on the whole. They organised a program that changed international and mobile rates."

Lemon agrees, he said the margins of the established telcos were driven down and the price pressure within the market was removed.

"Businesses now have a better picture of what they want from carriers and what carriers have to do to get their business," Martin said.

Join the PC World newsletter!

Error: Please check your email address.

Struggling for Christmas presents this year? Check out our Christmas Gift Guide for some top tech suggestions and more.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Kelly Mills

PC World

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?