Telecom remedies breach of broadband obligations

The Commerce Commission will monitor Telecom's commitment that 80% of PSTN lines high-speed broadband capable by 2012. Photo / Kenny Rodger

Telecom has remedied a breach of its separation undertakings linked to the spread of higher broadband speeds.

The Commerce Commission previously said it appeared the breach was unintentional.

It related to Telecom's failure to consult and provide information to Communications Minister David Cunliffe and the Commerce Commission before June 30 about the method by which Telecom classifies customer service addresses.

The information will enable the commission to monitor Telecom's commitment to ensure that 80 per cent of the country's lines in the old Public Switched Telephone Network (PSTN) network are capable of higher broadband speeds by 2012.

Telecommunications Commissioner Ross Patterson said that since notification of the breach Telecom had been in active consultation with the commission to work through a robust process to classify the customer addresses and establish a definitive count of PSTN lines.

The undertakings are obligations Telecom must meet under the split into three operational units forced on it by the Government.

They include migrating over four years the company's existing voice and data products in zones that cover more than 80 per cent of existing PSTN lines to products based on inputs from its new advanced broadband network.

The commission yesterday released its final telecommunications services obligations (TSO) cost calculation for 2005-06, putting the figure at $58.2 million.

Under the TSO, Telecom is obliged to provide certain local residential telephone services to residential customers who may not otherwise be provided with those services at an affordable price. Telecom bears about 69 per cent of the TSO cost with most of the rest carried by Vodafone and TelstraClear.

- NZPA