Telecom profits cut in half

TELECOM PROFITS CUT IN HALF : Due to it's ageing copper lines; Telecom New Zealand has wrote down it's worth by more the half. Net profit is estimated at $166 million, opposed to last year's $382 million. The company made the change as a result of attaining the governments $1.32 billion fund to give New Zealand better internet. As the plan is; I don't find it very beneficial in the long term. New Zealand will be receiving "ultra-fast" ADSL2 which (In theory) can deliver around 20+Mbps download and 1Mbps, however, countries like Japan and South Korea have had fibre optic for years; which can deliver a 100+Mbps internet connection, packaged with plans allowing unlimited data allowance. It's not going to take very long for ADSL2 to be just as out-dated as copper lines are now. - posted by Ciaran