Tex Edwards may stay on at Econet in some other capacity. Photo / Jeff Brass
Tex Edwards may stay on at Econet in some other capacity. Photo / Jeff Brass
KEY POINTS:
Econet's flamboyant chief project officer Tex Edwards has been dumped from his role in the mobile phone business he has been trying for six years to get up and running.
Econet is 30 per cent owned by the Hautaki Trust and 70 per cent by Johannesburg-based Econet Wireless.
But it is understood that Hong Kong equity group General Enterprise Management Services, which has funds of more than US$650 million, and Communications Venture Partners are negotiating to take a stake.
Representatives from the equity firms have taken over management from Edwards and are negotiating mobile interconnect deals with Vodafone and Telecom.
"They are probably about 12 months away from any kind of service. They are building the initial infrastructure, testing it and getting ready for a launch," said a source.
Edwards wouldn't comment publicly but it's understood he may carry on with Econet in another position.
Previously Edwards has called himself and Econet "freedom fighters for the New Zealand consumer".
They have been trying to build a national third generation mobile network since 2000 to compete with Vodafone's and Telecom's networks.
Edwards has said that lack of regulation means a new mobile phone entrant faces huge barriers.
But industry observers have been highly critical of his inability to build a network in six years despite spending several hundred thousands of dollars on plans for it.
By the end of last June the company had spent $32 million, allocated another $45 million and had $80 million in reserve.
Some analysts say Commerce Commission moves to investigate setting prices for rivals' access to Vodafone's and Telecom's networks will slow Telecom's growth.
Goldman Sachs JBWere analyst Andrew White said the move represented the strongest signal so far that the commission wanted to make it easier for new entrants in the sector.
