Courts threat in lines access row

By PETER GRIFFIN technology writer

New Zealand's two largest telcos could be headed for court over a network access dispute that threatens to cut access to thousands of users.

Clear's $35 million network interconnection agreement with Telecom expired at midnight on Sunday, leaving in limbo the status of its essential access to Telecom's national infrastructure.

Clear's executive general manager of corporate affairs, Kevin Millar, said Telecom had said it would give 14 days notice if it planned to cut Clear's access to its network.

"If they move to do something foolish, like try to cut us off, we will resort to the courts. We're confident that the courts would say it is in the nation's best interests for disconnection not to occur."

The companies have been locked in negotiations in the months leading up to the expiry.

Clear claims Telecom has tabled a new deal which would impose interconnection price increases of 70 per cent.

Telecom spokesman Martin Freeth said the pricing in the expired agreement was never intended to be extended indefinitely and was influenced by one-off payments between the two companies.



Telecom was continuing to provide access as negotiations continued, but at the more expensive terms of the new contract rejected by Clear.

The dispute comes on top of another in which Clear claims Telecom has overcharged it by millions of dollars

Mr Millar said external audits of Clear's accounts had shown the company had been overcharged every billing month for several years.

"We've got examples of Telecom retail customer charges appearing on Clear's interconnection accounts," he said.

Clear's chief executive Peter Kaliaropoulos said last week that Clear planned to spend $150 million this year building a local access network this year to reduce its reliance on Telecom.

He said Clear would consider appealing to the telecommunications commissioner if a resolution on commercial terms was unobtainable.