Very strong domestic market position Underlying demand for reliable telecommunications Strong free operating cash flow Commitment to a moderately conservative financial profile Highly competitive markets Technology risk Moderate domestic regulatory risk The ratings on Telecom Corp. of New Zealand (TCNZ) 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
