Telco says scrap free calls

By RICHARD BRADDELL

Newcall Group, a niche telecommunications company, says the Kiwi Share obligation that limits what Telecom can charge for local telephone calls should be scrapped.

Instead, Newcall proposes that local calls should be levied up to one cent per minute with the proceeds going to fund the development of rural telephone companies that would maintain free local calling and provide high-speed internet access.

Newcall said the telecommunications inquiry's recommendation that Telecom shoulder the cost of the Kiwi Share obligation on its own condemned rural users to inadequate telecommunications.

"If moves are not made to come up with more innovative ways of servicing rural areas, this sector of our country will continue to decline," Newcall said.

Newcall chief Norman Nicholls said he advocates the Australian approach, where the Government calls for tenders to service rural areas.

He said tenders should be evaluated on the quality and extent of services.