As rightly pointed out by others the technology in telecommunications is changing so quickly that Telecom’s present equipment could very well become obsolete in months of taking over so those buying the Telecom shares run this huge financial risk.
The present financial returns look very attractive due to the high charges that have been imposed on Telecom customers (you and me). It was really like another form of taxation which will fortunately end when the monopoly is finally dismantled.
When this happens we will all give a huge sigh of relief but the huge profits that Telecom are currently getting could become a thing of the past so let’s deregulate the market and sell the share to a proven operator who is prepared to take on all the risks associated with this takeover.
What we don’t want is to replace an NZ wolf (Telecom) with a local wolf who expects to continue to get the current level of profits to justify the high price that they are paying for these shares.
Finally it must be remember that we allowed ourselves to get into this situation (similar to Toagate) – we sold the shares for nonessential reasons and allowed ourselves to get into this predicament – nobody forced this on us – we signed the contract with Telecom.