According to a report in the New Zealand Herald, TelstraClear has signed a deal to transfer around 30,000 customers on its ‘029’ mobile network to Vodafone. The decision was supposedly taken after talks between the two telcos broke down over the agency agreement that allowed TelstraClear to resell Vodafone’s mobile phone service. However, local industry watchers note that TelstraClear’s surrender of the ‘029’ customers – which typically tend to be government ministries such as the MSD – is an odd move. With the ‘029’ network the operator could sell customers an integrated fixed and mobile solution, but without it, potential users will have to look to Telecom or Vodafone for a suitable alternative. Some go as far as to say that TelstraClear is looking increasingly less credible as a telecoms contender in New Zealand, adding that the decision by its parent company Telstra not to roll out a trans-Tasman link for its new Pacific cable is indicative of its wider ambitions for the market.