Telecom settles with rival

13 Jan 2006

Telecom New Zealand and its main fixed line competitor TelstraClear have settled a long-standing dispute relating to access to Telecom’s wireline networks. The agreement will see Telecom increase discounts for all wholesale services except for Homeline from 16% to 18%; the Homeline service wholesale discount will rise to 5% from 2%. Telecom will also supply its rival with two unbundled bitstream services (UBS) for resale to residential and business users; the 256kbps service will be priced at NZD26, while the 3.5Mbps service will cost NZD30. In addition, the interconnect rate will be reduced to NZD0.01 per minute from NZD0.0113. Finally, Telecom has agreed to pay TelstraClear NZD17.5 million as settlement of a claim relating to backdated pricing. Telecom spokesperson Tim Lusk said: “We have always believed negotiated solutions are more sustainable and better for customers than regulated outcomes.”

New Zealand, Spark, TelstraClear