Clear seeks ruling on wrangle with Telecom

By CHRIS BARTON IT editor

Clear Communications has asked the Commerce Commission to intervene in a dispute with Telecom which it says is costing it $250,000 a month.

The dispute centres on Telecom's refusal to automatically switch 40,000 WorldxChange customers over to Clear's network.

The commission is already investigating the matter after WorldxChange complained in June.

General manager corporate affairs Kevin Millar said Clear had laid its own complaint after exhausting all avenues for a commercial resolution.

"Telecom is using its dominant position to stop customers exercising their freedom to choose a supplier," said Mr Millar.

He said talks had also broken down on a related dispute about Telecom providing "non-code access" - the removal of a four-digit prefix when dialling - for residential to mobile phone calls.

Clear had a contract with Telecom for the service to be provided from July 31, but Mr Millar said Telecom had refused to give reasonable terms. The refusal has triggered a "notice of dispute" clause in the contract and the appointment next week of an arbitrator.

"We are seeking significant damages from [Telecom]," Mr Millar said.

Both matters have revenue implications for Telecom. With 40,000 WorldxChange toll customers switched to Clear's network, Telecom would miss out on interconnect revenue estimated to be around $6 million a year.

It also stands to lose significant home-to-mobile call revenue with both Clear and WorldxChange promising price cuts of between 15c and 20c a minute once non-code access comes into effect.

WorldxChange wants to shift to Clear's network for the routing of its toll calls because of lower access charges.

Telecom public affairs manager Martin Freeth said the company still saw the matter as a commercial dispute. "We have been in discussions [with Clear] and are ready and willing to have further discussions."

On the non-code access issue, he said Telecom had offered Clear "reasonable and fair terms", which had been accepted in principle by two other carriers.