long term, page-16

I think there is a little more to it.

I am confused about what strategy PIE actually have now. I always thought it was a supply arrangement but clearly not given the recent announcements.

If they (PIE) wanted identity attached to the payphones it would be from an advertising and recognition viewpoint. From a financial viewpoint would it be more profitable for PIE brandname to be used in that kind of arrangement? I'm not so sure. TNZ clearly want labelling rights but i think PIE want the incidental revenues (or a share of them). Perhaps this is what they haven't been able to agree on? The did say at the AGM they were selling the business plan and not just the phone itself.

IF TNZ are still interested in trialling and I were at the helm of Pie, i would be hesitant in continuing trials unless there was something positive down the track. Infact, why keep the resources in NZ at all? Pie need funding so why continue expending time resource with the TNZ group if they are still dancing around?
My view is that funding and TNZ issues are related.Perhaps to break into the TELCO market a partner is required. (ie cant be done by PIE alone) and TNZ being a well managed company have offered PIE another deal which in the short term meant no PIE webphone deal (apart from usage fees or rental), but in the medium term means co-ownership. In other words keep the phones here in NZ and we will continue to order further phones and also provide funding assistance in future cap raising to break into other markets.