Telecom expects four-year mobile revenue CAGR (compound annual growth rate) to 2013 of 8% to 9% versus market growth of around 3%.
Telecom chief executive Paul Reynolds yesterday also launched a new range of wireless broadband services to go with the XT network.
"New Zealanders are demanding fast, ubiquitous and future-ready mobile technology at their fingertips."
Telecom had joined with Alcatel-Lucent to manage the design and implementation of the new network.
New Zealanders now had access to one of the best mobile networks in the world, he said.
Forsyth Barr broker Suzanne Kinnaird said that after working through Telecom's revenue and cost expectations, her forecasts for New Zealand's largest listed company were little changed apart from some minor tweaking.
The additional handset costs associated with the launch of the new network - projected at about $50 million - were expected to be offset by additional revenue.
Telecom expected an increase in inbound roaming revenue in 2010, with total roaming revenue estimated at up to $250 million.
Telecom expected to increase its Auckland mobile presence significantly and expected to take a larger share of the important Auckland market, she said.
Gen-i was targeting a 25% increase in its Auckland market share.
The XT plans were fairly simple structures with a single rate for included and additional minutes, although they did not appear to be significantly cheaper than existing plans.
Variable amounts of data and texts could be added as extras, Ms Kinnaird said.
Per-minute pricing on contract plans varied from 49c a minute to 33c a minute for business plans and 75c to 37c for personal plans.
Cheap text deals were still available on prepaid (from $6 for 150 texts to $18 for 1500 texts), although the price had been raised slightly.
ABN Amro Craigs broker Chris Timms said the Telecom briefing day lacked the drama of last year, when full-year 2009 profit guidance was significantly lowered.
However, the briefing day delivered the key data ABN was looking for, including full-year 2010 guidance holding up, insights into the revenue and cost assumptions underpinning the operating profit, and confirmation on capital management and the strength of management.
"Today's bottom line, in our view, is that the market can take comfort from what appears to be a well-aligned management team with credible plans," he said.
ABN had a target price of $2.41 Telecom shares, which have traded around the $2.50 mark in recent days.
Forsyth Barr has a valuation on Telecom of $3.60 a share.
The main themes to come from the briefing day included Telecom's target to become New Zealand's most preferred telecommunications provider.
Progress so far showed improved customer satisfaction, improved perception by the public and competitors, improved staff morale, operational separation still on track, with 76 targets met and 83 to go, and broadband performance 27% better than the United Kingdom.
Its five-year targets are:
• One million fixed broadband customers compared with 815,000 now.
• 80% of New Zealand homes able to receive at least 10 Mbps to 20 Mbps broadband.
• 50% share of mobile market by revenue.
• IT services margin of 10% from 6% now.
• Gen-i target market share in New Zealand of 20% (13% now) and 3% to 5% in Australia (1.5% now). Higher-margin professional services are expected to form a large part of Gen-i's growth.
