In response to rumours circulating in media outlets, Telstra has confirmed that it is in talks to sell its New Zealand subsidiary TelstraClear to Vodafone New Zealand.
Speculation had been rife in New Zealand media that Telstra will sell TelstraClear to Vodafone. TelstraClear currently wholesales 3G mobile services from Vodafone in a deal signed back in 2009, which was scheduled to expire this year.
Telstra issued a note this morning to the Australian Securities Exchange (ASX), confirming that the discussions are taking place.
"Telstra was approached by, and is in discussions with, Vodafone New Zealand to explore the potential sale of Telstra Corporation's New Zealand subsidiary, Telstra Clear, to Vodafone New Zealand," company secretary Damien Coleman said. "Discussions are continuing, and there is no certainty as to whether an agreement will be reached.
Telstra has been seeing positive numbers of late, with over 2.5 million mobile customer acquisitions in almost two years, and the signing of the $11 billion National Broadband Network (NBN) agreement that will see Telstra paid to move customers over to the NBN and lease infrastructure to NBN Co. However, the same cannot be said of its Kiwi subsidiary. According to Telstra's half-year results released in February, in the six months to December 2011, TelstraClear saw a 3.8 per cent decline in revenue, due to a highly competitive market, the Christchurch earthquakes and regulated mobile price decreases.