WELLINGTON -(Dow Jones)- Telecom Corp. of New Zealand (TEL.NZ) Thursday said sales after the launch of its new third-generation mobile network XT had exceeded its most optimistic targets.
"We are tracking about 20% ahead of what we had forecast for June as a result of the launch of XT," said Rebecca Earl, public relations manager for Telecom's mobile operations.
Telecom said there were sales of around 25,000 units, including handsets and SIM cards, in the first five days, "setting the business on track to have one of its biggest months yet."
Telecom, a former state-owned monopoly and the country's biggest telecom operator by revenue and subscribers, has pinned its hopes on the success of the new network as it seeks to increase its mobile market share to 60% from around 41%.
The company has seen its margins and market share hurt by new regulations forcing it to split into wholesale, retail and network arms, with rival operators allowed access to its copper loop.
Its new XT mobile network was launched at the end of May and includes global roaming services, 3G coverage for 97% of the country and fast mobile broadband access.
The company said the new XT mobile network is attracting interest because of its new handsets, in particular those able to access mobile broadband services and a new "One Rate" plan which allows customers to use the included minutes to call mobiles and land lines at any time for a flat rate.
The total cost of building the network is around NZ$574 billion.
Meanwhile, Vodafone Group Plc's (VOD) local unit, currently Telecom's only competitor in the mobile market, has stepped up the pressure.
On the eve of Telecom's XT mobile network launch, Vodafone said it had completed its extension of its 3G network to 97% of New Zealand. Vodafone launched its network in 2005 and has gradually been extending it. The extension was completed a year ahead of schedule, the company said.
-By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com