The $840 million sale of TelstraClear to Vodafone includes a non-compete clause, and as part of the deal, Vodafone will continue service to TelstraClear's roughly 200,000 customers.
According to the Herald, TUANZ chief executive Paul Brislen was optimistic about how the merger would place Vodafone in a stronger position to challenge Telecom, but Consumer NZ's Sue Chetwin warned the consolidation could result in higher prices.
Federated Farmers said the deal could strengthen the financial case for an enhanced rural broadband offer by Vodafone.
"The upsides we see at Federated Farmers are TelstraClear's strong fibre network, its radio spectrum and of course, content. With TelstraClear being a Sky reseller, Vodafone gets the opportunity to integrate this content with its future offer to rural customers especially," telecommunications spokesperson Aders Crofoot said.
"Certainly Vodafone chief executive, Russell Stanners, was impressively upbeat at Federated Farmers' recent national conference on where they want to go.
"You feel this is the first act in a larger drama involving Telecom and Vodafone. Hopefully rural customers will get to enjoy it."
Meanwhile, CallPlus chief executive Mark Callander said it was well placed as the third-largest telco.
“Based on the Commerce Commission data, the merger will result in Telecom having a 49 percent share of the fixed line market, Vodafone/TelstraClear having 29 percent, CallPlus/ Slingshot with 9 percent and Orcon on 5 percent.
“It will be a turbulent phase for the industry and there is
potentially further consolidation ahead," he said.
“As the largest remaining challenger in the market we are tasked with a very important job. Not only do we need to continue innovating and driving down prices in the market, but we need the regulator to ensure a competitive playing field is maintained. This is critical for everyone across the country.”