Telecom New Zealand reported profit fell 34% in its first quarter to 30 September 2008. Net income dropped to NZD149 million (USD88 million) from NZD225 million year-on-year. First quarter revenue rose 2.3% to NZD1.44 billion. Total expenses were NZD977 million, a 5% increase on the equivalent quarter last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 3.3% to NZD466 million. The company said it is feeling the impact of the economic downturn and the government’s decision last year requiring Telecom to allow rivals to access its local network and set the access charges.