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Home / Business / Companies / Telecommunications

Telecom seeking clarification of Telecommunications Act

4 Oct, 2004 08:30 PM2 mins to read

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9.30am

Telecom today said it was heading to the High Court for clarification on some terms of the Telecommunications Act, to guide future determinations by the Commerce Commission.

Telecom general counsel Mark Verbiest said in a statement the telco was just seeking clarity for the future and was not appealing any determinations
by the Commission.

He said the company had been pointing out its concern to the Commission that determinations could go beyond the purpose of the legislation in the way that some services are defined.

"For instance, it's unclear whether a service such as subdivision reticulation, which provides new network to developers, can really be said to be a service provided over the fixed telecommunications network when it actually relates to the building of new network," Mr Verbiest said.

He said Telecom was also concerned about the Commission's ability to backdate its determinations.

"The Commission declined to seek the High Court's opinion on this issue and advised that the initiative rested with Telecom. So we are taking that initiative," Mr Verbiest said.

He said a judgement by the court would have no effect on determinations already made, but the Commerce Commission would be required to take it into account for any pending or future decisions.

TelstraClear has been named in the proceedings because it is a party to applications which are pending with the Commission currently and because it has been a party on past determinations.

Recent dealings between the pair include a conference to determine the cost of Telecom's Services Obligations (TSO), which are the minimum basic telephone and internet service levels Telecom must deliver to users around the country.

Last month the Commission also met with Telecom to discuss concerns over delays in its wholesale broadband internet service.

Meanwhile the duo could be headed to court again next year as the Commission seeks penalties against Telecom for alleged anti-competitive behaviour in the use of internet access code 0867.

- NZPA

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