On March 22, 2005, Standard&Poor's Ratings Services affirmed its ratings on Telecom Corp. of New Zealand (TCNZ). The ratings are principally underpinned by TCNZ's very strong domestic market position as the incumbent telecommunications owner and operator in New Zealand. TCNZ currently holds 70%-95% market shares of its traditional services, 40%-45% mobile market share, and 50%-60% Internet and broadband market shares. Its large and long-standing customer base places it in a strong position to compete in the growing underlying demand for telecommunications services. This position currently results in strong free operating cash flow, affording TCNZ the flexibility to invest as the demand for services evolves and as the company pursues its domestic and international strategies. TCNZ is committed to
