Telecom is considering selling some assets, as well as cutting hundreds of jobs, in a bid to cut costs and remain competitive.
The company's half year underlying profit fell 35% to $156 million in the six months ending December, and it has downgraded its full year profit forecast, due to intense competition and a weaker outlook for its Gen-i business.
Chief executive Simon Moutter said that while fixed line revenues continue to fall, mobile and data revenues are growing.
However, he said intense competition in the broadband market means the company is offering unprofitable plans to retain its 50% market share.
As a result, Mr Moutter said Telecom needs to get its costs down in order to survive.
Hundreds of jobs will go in the coming months and the company is also considering selling some of its assets.
Mr Moutter said Telecom will be looking at parts of its portfolio and may decide to exit some areas.
"We've asked our teams to look across the board at the costs to make some strong decisions fast and get on with moving us to a much more competitive position."
Mr Moutter would not say which businesses might be on the block, but he said AAPT, an Australian company which had a 29% fall in revenue in the half year, is definitely not for sale.
Telecom's share price closed up 8.5 cents to $2.29 on Friday.