Case | HBS Case Collection | June 1998 (Revised December 2006)

Clear Communications Ltd. vs. Telecom Corporation of New Zealand Ltd. (A)

by Willis M. Emmons III and Martin Calles

Abstract

Features the challenges facing an entrant in the New Zealand telecommunications market during the period 1989-1994. Clear Communications Ltd. (CCL), a joint venture owned by Bell Canada, MCI, New Zealand Television Corp., and Todd Companies, begins offering long distance service in May 1991. The firm is dependent on access to the network of the incumbent, Telecom Corp. of New Zealand, to offer most of its services. This dependence proves to be a significant obstacle to CCL's expansion into the local business call market, particularly given New Zealand's unique "light-handed" regulatory system. Clear ultimately spends millions of dollars in a failed four-year lawsuit to obtain better terms of interconnection. In October 1994, CEO Andrew Makin must decide the future strategic direction of the firm.

Keywords: Market Entry and Exit; Competition; Emerging Markets; Privatization; Monopoly; Wireless Technology; Corporate Strategy; Business or Company Management; Expansion; Law; Telecommunications Industry; New Zealand;

Citation:

Emmons, Willis M., III, and Martin Calles. "Clear Communications Ltd. vs. Telecom Corporation of New Zealand Ltd. (A)." Harvard Business School Case 798-085, June 1998. (Revised December 2006.)