Telecom asks for act clarity

By PAUL BRISLEN


Telecom is asking the High Court for clarification of parts of the Telecommunications Act in light of recent Commerce Commission rulings.

Telecom general counsel Mark Verbiest says the telco has filed papers asking the court to rule on the commission's interpretation of two aspects of the act. The first relates to the commission's ability to backdate any decision it makes.

"There is a review process relating to payments under the interconnect arrangement and, in the context of that, the commission has said it feels it has the ability to backdate the final price to take effect from the initial determination," he said.

The ruling concerned a determination made in 2002, which Verbiest said was too long ago.

"We're saying we disagree that the commission has the ability to backdate the price."

The second issue relates to what areas of Telecom's business the commission can regulate.

"We're required to wholesale non-capped retail services delivered by means of our fixed network. What we're saying is that services such as subdivision reticulation, Call Minder or high-cost new connections are services that are not primarily delivered by means of our telecommunications network and are non-telecommunication services," Verbiest said.

The commission has ruled in the past that such services are covered by its brief and so Telecom is seeking a judicial review.

"We're not appealing any determinations that have already been made; this is about future decisions."

A commission spokeswoman, Jackie Maitland, said the organisation was considering whether it would offer a response to the proceedings, which it must do within 30 days.

Telecommunications Users Association chief executive Ernie Newman is concerned the move could be a Telecom delaying tactic.

"We would be disturbed if it was a means to challenge the authority of the regulator."

Newman said he would be watching whether it was part of a wider move by Telecom to attempt to limit the commission's powers.

Verbiest said no hearing date had yet been set.