Commerce Commission takes One NZ to court, alleging 111 code breaches endangering ‘vulnerable consumers’

One NZ says it’s surprised and disappointed at the punitive steps a regulator seems intent on taking. Photo / Michael Craig

The Commerce Commission says it has filed proceedings in the High Court against One NZ “for multiple breaches of the 111 Contact Code - some of which the commission alleges are still ongoing”.

The telco says it’s surprised and disappointed the regulator has taken the action, saying it fully co-operated over “technical breaches”.

With the Ultrafast Broadband (UFB) fibre rollout now complete, copper service can now be withdrawn in areas where UFB fibre is available - as long as six months’ notice is given under the Copper Withdrawal Code introduced by the commission in 2021.

For all copper drawbacks, an old phone will at least keep working over copper during a power cut. Phones designed for fibre always require electricity. The code requires telcos to offer an alternative, such as a basic mobile and battery back-up if necessary, when copper service is removed.

Telecommunications Commissioner Tristan Gilbertson said the code was in place to ensure that vulnerable consumers can contact the 111 emergency service during a power cut at their home.

“We’ve brought this action in light of One NZ’s disregard for the code and the safety of vulnerable consumers.”

Gilbertson said given widespread compliance across the rest of the industry, One NZ’s alleged failure to inform and protect its customers was a serious concern, particularly as it had the second-largest number of landline connections in New Zealand.

Consumer advocate Craig Young, head of the Technology Users Association of NZ (Tuanz), told the Herald: “It’s very disappointing to see this sort of action having to be taken by the commission against one of our biggest providers.

“Looking after our vulnerable users is critical - especially where they are isolated by geography or health needs.

“This is a message that the commission takes this seriously as do we, [but] we’d like to see it sorted without a long court case.”

One NZ responds

One NZ spokeswoman Nicky Preston said the company was disappointed to learn of this.

“We have fully co-operated with the commission since we became aware of its concerns and have been transparent throughout.

“We were open with the commission about where we had gaps, such as missing the deadline to contact some existing vulnerable customers within 12 months.

“We also missed ensuring that certain annual communications went to all landline customers about the 111 Code. However, we continued to share the information via other channels including on our website, as part of the sales process, and in welcome emails.”

“We remain committed to upholding the requirements of the code. We have co-operated throughout the process including acknowledging where we had gaps, which are now rectified.

“We have always complied with the key requirement to ensure all relevant customers have either a mobile phone or battery back-up. We are not aware of any customers being impacted or harmed.”

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.