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Telecom New Zealand: overcoming challenges
Transcript of Telecom New Zealand: overcoming challenges
know about Telecom Background In 1990 Telecom became one of the first telcos in the world to be fully privatised Today, Telecom has a significant level of operational scale within the New Zealand telecommunications market, with assets including; On 30 November 2011, Telecom demerged into two entirely separate, publicly listed companies: a retail services provider (Telecom) and a network services operator (Chorus) Telecom Corporation of New Zealand Limited (Telecom) was formed in 1987 out of the telecommunications division of the New Zealand Post Office, a government department (cc) image by nuonsolarteam on Flickr the PSTN network equipment for fixed line calling the XT 3G mobile network national backhaul networks a 50% ownership interest in the Southern Cross international cable one of Australia's most extensive fixed IP networks 2.1 Telecom New Zealand: overcoming challenges (pp 46 – 48) Case Study What can Telecom NZ’s management team do to reassure its customers, particularly its business customers, about the quality of its network and services?
How can it ensure that it has the right people and resources in place to deal with future problems? Look up the definition of unbundling
And tell us How it relates to the Telecom case Recent History – “Unbundling” Unbundling is a term that has been commonly used to describe granting access to components of Telecom's local loop networks for other telecommunication service providers Definition How does it relate to the Telecom case ? Planning & contingency planning Why is planning important for Telecom to consider? six strategic objectives Improve customer satisfaction. Deliver operational and financial efficiency Invest in world-class infrastructure and capability Develop new-wave products and services revenues Enable Telecom’s people to grow and succeed Meet the needs of key stakeholders Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 (cc) image by nuonsolarteam on Flickr Define your objectives – SMART Model No. 1 Determine where you stand in relation to objectives No. 2 Develop premises regarding future conditions No. 3 Analyse and choose among action alternatives No. 4 No. 5 Implement the plan and evaluate results Five planning processes When has planning gone not so well for Telecom? Spend $567 million to build new XT mobile network. – It was delayed as Vodafone claimed it would interfere with reception on it’s network and took Telecom to court.
They promised customers a world-class network, global roaming and very fast mobile broadband data connection speeds. - December 2009 Telecom was hit by a series of unexpected and unexplained glitches.
Customers started doubting the new network and diminished consumer confidence has been an ongoing problem for the company. What could they have done better? What happened in 2010?
When was Telecom New Zealand established?
How many core strategic objectives do they have?
Identify three bad times for Telecom NZ (Privatisation is the selling of state-owned enterprises into private ownership) NZ Commerce Commission passed legislation in 2006 saying that in order to encourage competition between network providers Telecom has to provide unbundled access to their network lines
Planning is the process of setting objectives and determining how to accomplish them.
Contingency planning identifies alternative courses of action for use if and when circumstances change with time. What is planning & contingency planning? Why is planning important for Telecom to consider and when has it not gone well for Telecom? The fact of privatization affect on Telecom Telecom was bought for $4.25 billion in July 1990, when the company had shareholder funds of $2.5 billion.
Shareholder funds declined over the next several years despite cost-cutting because of large capital payments to its shareholders who walked out of the company from 1997 with a realised capital profit of $7.2 billion, in addition to a share of over $4.2 billion in dividends – adding approximately $10 billion to New Zealand’s international liabilities.
Between 1990 and 1998 the company’s shareholder funds halved to $1.1 billion by when it was heavily in debt.
In the decade from 1995 to 2004, Telecom paid out dividends of $6.7 billion from net earnings declared in New Zealand of $5.4 billion, of which approximately $5.0 billion went overseas P168