By MICHAEL FOREMAN
Mounting Telecom 0867 Internet connection charges have forced an Auckland ClearNet business user to switch to the Telecom-owned service provider Xtra.
Brian Falkner, of Albany-based Internet developer BJC Services, said he began to receive connection bills from Telecom late last year even though he was a ClearNet customer.
"At first, when the bills were just a few hundred dollars, it was just an inconvenience. When we started getting charged $500 or $600 a month we realised that we had a serious problem."
Like many small businesses, BJC uses a residential telephone service so its Internet connection with ClearNet is subject to a 2c a minute charge from Telecom, as no 0867 interconnection agreement exists between Telecom and Clear.
Mr Falkner said as an Internet company, BJC was online for most of the day. Its last Telecom statement included $764 for a month's Internet connection charges, which have amounted to about $2000 to date.
Clear reimburses its customers in such cases, but with toll call credits rather than cash. BJC's credit with Clear also stands at roughly $2000.
Mr Falkner said he had no chance of using this credit, which was not transferable.
"If we had let it run, by the end of the year we would have owed Telecom $8000 and had $8000 credit with Clear."
After consulting with ClearNet, Mr Falkner said he was left with no option but to change.
"We've just moved to Xtra. We had no choice," said Mr Falkner. "It went against the grain because we would have preferred to stay with Clear."
Mr Falkner believed many small businesses were in a similar position.
"We are the ones who are getting hit," he said. "I can't believe Telecom has done it for this reason, but it's the effect it's having."
Clear spokesman Ross Inglis admitted that users who were online for more than 40 hours a month were likely to receive credit in excess of their bills.
"We understand that a high-end user might not find a credit against their account entirely satisfactory. For that reason we expect some to go to other ISPs [Internet service providers] and we understand that decision."
Telecom spokesman Glen Sowry said BJC had not been forced to go to Xtra as there were more than 80 ISPs to choose from.
He said Telecom had invited Clear to join the 0867 scheme in January, offering to maintain the revenue Clear was getting under the interconnection setup between them.
This base figure would be indexed to increase at the expected growth rate of the Internet - 70 per cent per year.
"We believe it was a fair and equitable offer. Unfortunately Clear rejected it and their customers are suffering the consequences."
Firm drops Clear as Telecom bills climb
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