Telstra farewells Say G'day cards

TELSTRA has walked away from the international calling card market as the big telco streamlines in line with its five-year transformation plan.

The carrier has agreed to sell the business unit behind its Say G'day and Super Buzz international pre-paid calling cards to call card specialist Telecorp.

"Telstra's decision to sell the brands is part of its strategy to streamline its product offerings and reduce complexity in the business," Telstra spokesman Peter Taylor said.

Telstra would review its operations to find other opportunities to simplify its business, he said. "Each product and area of our business is being looked at on its merits and long-term strategic fit. Where rationalisation opportunities exist we will take advantage of them."

Telecorp, which trades as Gotalk in Australia and New Zealand, declined to reveal how much it paid for the business but it's understood that Telstra agreed to sell the for less than $10 million.

Telstra would continue to sell its PhoneAway and Phonecard cards, which could be used to place calls overseas but they were not aimed at the international call market, Gotalk chief executive Steve Picton said.

Analyst Paul Budde said the sale indicated niche markets were declining in importance for Telstra.

"This has become a niche market application. It has declined in importance for Telstra as a whole, but for a smaller company this is still a very lucrative market with plenty of opportunities," Mr Budde said.

"It's our core business so we believe the business is probably worth more in our hands," Mr Picton said.

Gotalk said its business turned over $150 million a year. The acquisition could push its share of Australia's call card market above 60 per cent.

Calling cards started losing their appeal for consumers as low-cost pre-paid mobile and internet telephony services entered the market.
Author: Andrew Colley
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