TELECOM NZ EXPECTED TO INCREASE EFFORTS TO SELL AAPT.

SYDNEY, Feb 1 Asia Pulse - Telecom New Zealand (ASX:TEL) is expected to ramp up attempts to sell off its ailing Australian operation AAPT when it reports its first half results this week.

Telecom earlier this year told the market it would cut the value of AAPT in half to between A$600-A$700 million when it reports its results in Auckland on Thursday.

Analysts have long said that AAPT was worth less than half its $A1.4 billion ($US1.06 billion) book value, due to increased competition and reduced fixed-line earnings in the Australian telecommunications market.

According to analysts, New Zealand's largest telco is expected to report a net profit of around $NZ385 million for the first half, slightly lower than the $NZ391 million for the previous corresponding period.

Forecasts for the second quarter range between $NZ179 million and $NZ200 million, down from $NZ207 million in 2004/05.

But all eyes will be on the Australian business, which Telecom has been attempting to sell since late last year.

Telecom has said a strategic review of options for the Australian business is on track and scheduled to start in late January or early February.