Download Weekly: Vocus to float NZ business

NZX public offering expected next year

Vocus says it intends to float its New Zealand operation on the NZX. The initial public offering could be in the first half of next year, although timing depends on market conditions.

In 2018 Vocus attempted a trade sale of the New Zealand business but that fell through after the company received inadequate offers.

The parent company announced its intention to float the NZ business in a statement to the Australian Securities Exchange. The statement says the board considered that the New Zealand business had significant opportunities that would be “better realised if Vocus New Zealand is an independent entity”.

Challenger

In its statement, Vocus described the New Zealand business as an established challenger in a strong market position that is led by an experienced and highly capable management team.

Vocus is New Zealand third-largest broadband operator behind Spark and Vodafone. It is an integrated telecommunications provider with its own fibre infrastructure. It also has a power retail business that is wrapped into broadband sales.

It includes the Orcon, Slingshot and Flip brands. Recently it acquired Stuff Fibre.

In its results for the 2020 financial year Vocus New Zealand had revenues a shade under $400 million. EBITDA came in at $65 million. Vocus has 220,000 residential broadband customers and 20,000 business customers.

Power cut protection code finalised

The Commerce Commission has finalised its 111 contact code, which aims to cover emergency calls during a power failure. In past landline phones had their own power and could operate normally in a power cut. Modern fibre and fixed wireless connections need a local power supply.

Under the code telcos must warn new customers and remind existing customers that they may not be able to make emergency calls in a power cut. They must tell customers what they can do to protect themselves and where to get help. Extra steps much be taken for customers with medical conditions.

TCF CEO Geoff Thorn says the telecommunications industry is committed making the code work. He points out that most people now how mobile phones they can use for emergency calls and says telcos will be more likely to provide mobiles than to supply customers with battery back-up to keep lines working in a power cut.

Half of all business had ransomware demand

Aura Information Security, a division of Kordia, says more than half of New Zealand businesses have been on the receiving end of a ransomware attack in the last year. One in five companies say the attacks caused serious disruption. The same number, one in five, say they are getting 16 or more ransomware attacks every quarter. Two-thirds of companies say they would pay a ransom. One in ten say they would be willing to pay $50,000 or more.

Vodafone taps Amazon Connect for call centre upgrade

Vodafone says it will use Amazon Connect to simplify its customer service. AWS NZ managing director Nick Walton says his company's cloud contact centre will give Vodafone a scalable system that can adjust to changing customer needs in real-time and that this will allow Vodafone to engage naturally with customers.