By CHRIS BARTON
i4free has won its interim injunction hearing against Telecom, allowing it to continue providing free Internet access until the full case is heard.
The chief executive of i4free, Annette Presley, said it was a great moment for New Zealand Internet users because they now had choice.
Justice Judith Potter ordered
that Telecom may not disconnect i4free's 0867-prefixed Internet access phone numbers. Neither is it permitted to restrict access to i4free alone in cases of overloading on the phone network.
If overloading occurs, Telecom must apply its restrictions proportionately on other 0867 Internet users as well.
"The terms and purposes of the orders are clear. I would expect them to be observed by Telecom," said Justice Potter in her High Court judgment.
She concluded that there were questions to be tried on both the "interpretation of the contractual documents" and whether Telecom "has used a dominant position in the telecommunications market" in breach of the anti-competitive provisions of the Commerce Act.
But while i4free may have gained breathing space until the trial, the bitter dispute is far from over.
Telecom communications manager Martin Freeth said Telecom would consider an appeal against the interim injunction.
But he said Telecom would not contemplate giving 30 days' notice to terminate i4free's contract, nor delay requests for extra phone numbers.
"That wouldn't be well received by the court," he said.
Telecom supported the extension of choice in Internet services, but only on a commercially and technically sustainable basis.
"That choice includes free Internet access, although not under the type of scheme created by i4free and Clear," said Mr Freeth.
Clear has entered the fray with its own injunction hearing set down for May 22.
It wants Telecom to adhere to the terms of the number portability agreement so Clear can offer other Internet providers the same call re-address process i4free uses.
Justice Potter acknowledged that Telecom had difficulties in managing its network in the face of the dramatic growth in Internet calls, but did not accept that the growth was entirely unanticipated: "Indeed, its own ISPs are the largest contributors to that growth."
