Telecom considers it is not prudent to proceed with the issue of shares

Tag : mobile cdma phone
 
When it released its full-year financial results last month, TNZsaid it would pay an 8c a share fully imputed fourth-quarterdividend, compared with a 14.5c a share fourth-quarter dividendlast year.
TNZ also said at its results briefing last month that it wasevaluating the opportunity to accelerate the launch of its newbroadband mobile phone network.
"Telecom considers it is not prudent to proceed with the issueof shares under its dividend reinvestment plan for the upcomingquarterly dividend, or undertake the associated on-market sharebuyback of Telecom ordinary shares," the company said.
TNZ has not yet released any details of its mobile network plansbut is expected to want to complete the network by 2010.
The company has been beaten in the booming mobile sector by itsonly rival, Vodafone, triggering the acceleration of plans for thenew network.
The company has been through a tumultuous two years, with rough newregulations forced on it by the New Zealand Government and sweepingchange to senior management, including a new chief executive inScottish import Paul Reynolds.
TNZ said it would update investors on any material developmentsregarding the new network at the time any decision was made.
The company is striving to deliver nationwide third generationmobile phone coverage before Vodafone.
TNZ has stuck with less popular CDMA mobile technology, which is nolonger used in Australia.