Telecom rivals say customers paying too much for phone lines

By ANGELA GREGORY

Most New Zealanders pay an extra $84 a year for a phone line because they have no choice, say Telecom competitors.

TelstraClear, CallPlus, Slingshot, ihug and Compass are running full-page newspaper advertisements asking people to make a toll-free call to register their disgust.

The move comes as Communications Minister Paul Swain considers a Commerce Commission report into the "unbundling" of the vast Telecom network.

The commission recommended in December that Telecom competitors gain "bitstream" access for digital subscriber line services which deliver high- speed internet to home users and small to medium-sized businesses.

This disappointed competitors, as an earlier draft report had recommended the unbundling of the local loop, or copper wire service, which they said would have opened the way for them to compete for the residential phone line service.

TelstraClear chief executive Rosemary Howard said the "Call for Change" campaign highlighted the double standard that existed for those who did not live in the parts of Wellington, Kapiti or Christchurch where there was competition.

Mrs Howard said about 90 per cent of New Zealanders not living in those areas would pay an extra $84 a year for a basic home phone line.

Telecom customers in Wellington and the Christchurch suburbs where there was choice paid $32.85 a month for a standard home phone line; those without choice paid $39.85 a month.

CallPlus director Annette Presley said the Commerce Commission recommendation would mean things stayed the same.

"Here is the opportunity for New Zealanders to say 'no more' to Telecom."

Consumers' Institute chief executive David Russell said it was disappointing the Commerce Commission had not stuck to its original recommendation.

"Consumers are still effectively captive to Telecom," he said.

Telecom spokesman John Goulter said the commission's focus was on broadband for internet services.

Mr Goulter noted there was increasing competition for voice calling services from providers using wireless technology and soon "about 80 per cent of New Zealanders will have that choice".

Mr Swain was to receive submissions on the matter today and could accept, reject or send the recommendation back to the commission for more work.

Telecommunication Users Association chief executive Ernie Newman warned that if the minister accepted the recommendation Telecom would retain its monopoly forever.