TeamTalk is considering two acquisitions and says it will be able to give investors more details before the end of the year.
The listed mobile radio and broadband company has said it is expecting a tough year due to the splitting of Telecom's retail and network arms, and has taken a hit with the Government moving to a single-sourcing model for telecommunication services.
TeamTalk managing director David Ware says mid-sized telecommunications firms are being squeezed by the industry transformation as a result of the ultra-fast broadband initiative and many want to get out of the business.
He says TeamTalk is looking to capitalise on this, and is seeking to acquire established businesses that fit with what the company is already doing and have a solid management team, customer base and cash flow.
Shares in the company closed down 2 cents to $2.60 on Wednesday.