By CHRIS BARTON
Another free internet service launches today amid threats by Telecom to close it down.
Under the slogan "free internet access forever," i4free promises a free service with no hidden costs and no time restrictions on internet access, but is battling Telecom over its method for connecting users.
"We believe everyone
should have access to a free internet service - just like free TV," said chief executive Annette Presley.
"But Telecom is trying to shut us down."
She said Telecom's tactics were an abuse of its monopoly position.
"If we come out with a free service, that may hurt Telecom's internet business [Xtra]. But the last thing we want to do is take on Telecom on a legal basis. We are pretty scared about this."
At issue is the way i4free intends to connect users to the internet by readdressing calls to i4free onto Clear's network. Telecom claims that breaches the terms of its "0867" internet connection service.
It has advised by letter that it "will be forced to disconnect" i4free's numbers from 0867 if it "diverts calls using Number Readdress to another carrier's lines."
I4free's replied that nothing in the 0867 terms and conditions prohibits diverting the calls to Clear's network. Any attempt to do so would be in breach of Section 36 of the Commerce Act, relating to the use of a dominant position for anti-competitive purposes. I4free has not yet had a reply back from Telecom.
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