TelstraClear cleared to resell Telecom's services

By PAUL BRISLEN

The Commerce Commission has ruled on a dispute between Telecom and TelstraClear over the resale of residential services.

TelstraClear will be allowed to resell Telecom's line rental and "smart phone" services, such as "call minder "and "call waiting" at a discounted rate.

The companies first applied to the commission for a ruling in November 2002 although subsequently the two telcos reached a commercial agreement on most of the issues apart from that of residential services.

Late yesterday, the commission decided on 28 different services or bundles of services that will be made available to TelstraClear via Telecom's network.

TelstraClear will be able to buy Telecom's line rental at a discount of 2 per cent and the smart services at a discount of 16 per cent, giving the company the chance to offer the complete home phone service for the first time, according to its manager for government relations, Grant Forsyth.

"We describe it as getting Telecom out of your letterbox for ever."

However, TelstraClear will go back to the commissioner to seek another ruling on the discount rate.

"We will be seeking a more realistic price." Forsyth said the current discount rate of 16 per cent means TelstraClear could not offer all the services it would like to.

Telecom's general manager of government relations, Bruce Parkes, described the move as disappointing.

"It's extending the regulatory hand further than it really needs."

Parkes says Telecom argued that services such as "call minder" existed in a wider marketplace than the commission was considering.

"When we sell call minder it's in the context of customers being able to go to Dick Smith and buy an answering machine quite cheaply." Parkes said Telecom's view was that there was already plenty of competition in this area and regulation was not needed.

However, the commission described competition in this area as "limited". The agreement runs for the next 18 months.