Telecom denies AAPT on the block

Telecom has denied speculation it has put its Australian unit, AAPT, on the block.

The Australian Financial Review said today Telecom had reaffirmed its commitment to the Australian market, saying it planned to have a meaningful presence on both sides of the Tasman for many years.

Telecom this week said it was relaunching AAPT and is expected to make an aggressive fresh marketing push which would reposition some of its brands.

Telecom general manager finance Philip King told AFR yesterday AAPT was not on the market.

"We haven't appointed anyone to sell it and it's not for sale," Mr King said in response to market speculation that Macquarie Bank and Salomon Smith Barney had already been appointed to broker a deal.

However, he would not rule out the possibility of an ownership change.

Brokers said Telecom would take a bath on any sale in the present environment. It paid over A$2 billion ($2.2 billion) for Australia's no. 3 telco.

Telecom chief financial officer and acting Australian chief operating officer Marko Bogoievski said this week the company the company was undertaking some "aggressive positioning activity".

Telecom wanted to present AAPT as an alternative for customers fed up with market heavyweight Telstra.

Mr Bogoievski said Telecom was comfortable with AAPT's current value. It wrote down its investment in AAPT in August by $850 million.

Fixed line customers at AAPT have dropped 24 per cent over the past 12 months to about 453,000.

Telecom's mobile partner in Australia, Hutchison Telecommunications (Australia) Ltd, said this week it was in final preparations to launch 3G services, due to open on April 15 in 20 locations.

Telecom is investing A$450 million for a 19.9 per cent stake in Hutchison's 3G venture. Some analysts believe markets are not ready for 3G, which allows almost complete internet service, and that Telecom is over-investing.

- NZPA