Small is beautiful for Gen-i

Telecom's business Gen-i does not expect to lose money by not tendering for another contract with Australian bank CBA.

Telecom signed a five-year, A$500 million ($638 million) contract in 2000 to provide Commonwealth Bank of Australia with the majority of its telecommunications services, and its current contract expires early next year.

Gen-i, Telecom's information and communications technology business, decided not to tender for the new contract, and to focus on smaller transtasman companies. Gen-i NZ spokeswoman Carmela Salisbury said the new tender would involve more effort and investment to meet CBA's needs.