Telecom letter angers competitors

9 Dec 2005

The publication of a letter to the government from Telecom New Zealand’s chief executive Theresa Gattung has angered executives at rival telcos. The letter, sent by Gattung in May 2004, has been obtained by local newspaper The Dominion Post. It calls for the government to halt plans to force Telecom to open up its local networks to rivals, a process known as local loop unbundling (LLU). Gattung threatened to curb Telecom’s investment in new infrastructure if the scheme went ahead and said that Telecom’s share price would plummet and New Zealand’s stock market would be adversely affected. Later the same month the government announced that it was shelving its plan for full LLU, opting instead to follow Telecom’s suggested path of allowing access via wholesale agreements. Rival telcos such as TelstraClear are now angry that the government gave in to what they see as bullying tactics.

New Zealand, Spark New Zealand Group