Very strong business position in the New Zealand market, providing a growing source of free operating cash flow to support its expansion into Australia. Commitment to reducing financial leverage and sustaining adequate credit-protection measures, with EBITDA interest coverage of greater than 6x expected in fiscal 2004. Expansion into the larger Australian market, which has similar business conditions to its domestic market. Major competitors in New Zealand are owned and funded by large, well-capitalised parents. The New Zealand regulatory environment is becoming more pro-competition, lowering wholesale prices for TCNZ's competitors and causing retail call pricing pressure. The Australian operations are still small compared with its major competitors, accounting for only about 3% of industry revenues and with about 75% of its
