Simon Hendery: Two mobiles the way to score business

There are two types of people who have more than one cellphone number: text-obsessed teens and senior managers of telecommunications technology companies.

The frugal teen SMS addicts need two phones to take advantage of Telecom and Vodafone's different plans. Many go with the 027 network from Monday to Friday because Telecom lets them send 1000 texts a month for $10. Then they switch to their 021 prepay phones when weekend texting on Vodafone is free.

The technology vendor company bosses are also motivated by money when it comes to putting 021 and 027 contact details on their business cards. They have - or could potentially win - multi-million-dollar contracts with both major telcos so don't want to be seen favouring one network over the other.

It's a small statement, but no doubt an important gesture when it comes to pitching to build those new base stations or that extended fibre-optic network.

I remember engaging in a painfully diplomatic conversation with one of these dual-network-compatible execs early this year.

Remember that medieval period earlier this year when Telecom's local loop still remained tightly bundled, like a clenched fist clutching a prized jewel for dear life?

This was just before Sir David the White Knight (under orders from Queen Helen) lopped that hand clean off with the mighty Sword of Regulation.

The conversation with the exec went something like this:

Q: So, what do think abut this unbundling concept? That would be pretty good for you guys if it happened, I guess?

A: Um, it's not something I really want to comment on.

Q: But surely unbundling would be a boon for business? All those fledgling telcos falling over each other to invest in infrastructure? You'd clean up, given all the network building work it would generate

A: Ah, obviously we'd like to see a business environment that offers our customers the best opportunities to grow, but it's not really appropriate for me to enter the political debate.

Q: Oh, right, Telecom's a major customer of yours, isn't it?

A: More coffee?

Indeed, the Sword of Regulation was a double-edged one for telco vendors. While it promised to slash open new markets for some, it also put Telecom's capital expenditure programme at risk, meaning the biggest chequebook in the industry was in danger of being hidden away.

While the technology providers may think it prudent to be diplomatic when asked questions on unbundling, the Business Roundtable was last week more than happy to proffer an opinion.

It said regulation was tantamount to abuse of property rights and the Government should compensate shareholders for the $2 billion-plus plunge in Telecom's market capitalisation.

The Government has dismissed the idea of compensation, and rightly so.

While it's easy to have sympathy with mum and dad investors who've been stung by the share price fall, the reality is investing involves risk and unbundling was always a possibility.

Rather than wasting time on a crusade for compensation, Telecom's shareholders - and the business in general - should be embracing the opportunities unbundling presents.

That's the stance Telecom is taking and there is a growing optimism within the sector that it might truly mean it.

Unbundling means an opportunity to grow the telco pie. This country needs a world-leading communications network if it is going to prosper.

Rather than bemoaning the Telecom share price slump, aggrieved fund managers should get more imaginative with their investments. They should go out, find an exciting communications technology start-up business and give it the money it needs to grow.

While they're at it they should also buy themselves a second mobile phone.

Nothing says "I want the entire telco sector to prosper" quite like the numbers 021 and 027 side-by-side on your business card.